What is the interest rate for full funding for the purchase of Coffee News franchises?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
For those with excellent credit, as evidenced by a credit report from Equifax, Experian or Transunion or similar credit rating agencies in other countries, and with verifiable extensive advertising or similar sales experience including entrepreneurial management experience of at least 2 years, you may be eligible for full funding for the purchase of a minimum of four or more franchises, subject to the initial payment of the training fee as more fully explained in Item 11. You will be required to attend the next Coffee News College at the time of purchase, and you will be required to use the printing services of Coffee News Printing, Inc. during the term of the loan. The interest rate will be 5% simple interest with weekly payments for principal and interest for up to 48 months and the weekly fees beginning at the start of the fourth month under the agreement by credit or debit card or electronic funds transfer in accordance with Item 6, (Other Fees).
Although we offer direct and indirect financing, we do not guarantee your note, lease, or obligation associated with any financing plan. See Item 22, Coffee News License Agreement as Exhibit A for a specimen copy of the Promissory Note.1
Source: Item 10 — Financing (FDD pages 16–17)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, full funding for the purchase of a minimum of four Coffee News franchises may be available to candidates with excellent credit and at least two years of verifiable advertising, sales, or entrepreneurial management experience. If eligible, the interest rate is 5% simple interest. Payments are made weekly for principal and interest for up to 48 months, beginning at the start of the fourth month under the agreement. Franchisees must use Coffee News Printing, Inc. for printing services during the loan term and attend the next Coffee News College at the time of purchase.
Coffee News may also finance additional franchise territory purchases after one year under the agreement through Coffee News USA, Inc. The interest for this will be at 5% APR (Annual Percentage Rate). To qualify for financing of up to three additional franchises initially, candidates must have good credit and a net worth of at least $100,000. The loan term varies from two to five years, based on the amount borrowed, ability to pay, negotiations, and a review of a personal financial statement. There is no prepayment penalty.
If a franchisee does not make timely payments, Coffee News can demand immediate payment of the full outstanding balance, including court costs and attorney's fees if a collection action is necessary. If the franchisee is a corporation, professional corporation, partnership, limited liability partnership, or a limited liability company, a Guarantee of Performance by the Principal stockholder(s), general partner(s), or member(s) must be executed.