What is the maximum number of additional Coffee News franchises that Coffee News may initially finance?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
t Applicable | Not Applicable |
ITEM 10
FINANCING
After one year under your agreement, we may finance additional purchases of franchise territories through Coffee News USA, Inc. at competitive rates and terms pursuant to a Promissory Note. If you want to buy more than one franchise, we may finance for up to three more franchises initially as long as you have good credit and net worth of at least $100,000.00. We also accept all major charge cards in payment. Interest will be at 5% APR (Annual Percentage Rate). The term will vary from two to five years based on the amount borrowed and the ability to pay based on the negotiations and a review of a personal financial statement.
There is no prepayment penalty. We will hold any such licensed rights to the licensed territories granted under the Coffee News License Agreement as security until you have paid your Promissory Note in full. There are no waivers of your legal rights and you are not barred from asserting a defense against us. We have no current practice or interest to sell, assign or discount to a third party all or part of the financing arrangement. If you do not pay on time, you hereby agree that Coffee News can call the loan and demand immediate payment of the full outstanding balance and obtain court costs and attorney's fees if a collection action is necessary. If Publisher / Debtor is a corporation, professional corporation, partnership, limited liability partnership, or a limited liability company, a Guarantee of Performance by the Principal stockholder(s), general p
Source: Item 10 — Financing (FDD pages 16–17)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, after one year under the agreement, Coffee News may finance additional franchise territory purchases through Coffee News USA, Inc. The financing will be at competitive rates and terms, and will be formalized through a Promissory Note.
If a franchisee wants to buy more than one franchise, Coffee News may finance up to three additional franchises initially. This is contingent on the franchisee having good credit and a net worth of at least $100,000.00. The interest rate for this financing is set at 5% APR (Annual Percentage Rate).
The term of the financing will vary from two to five years. The length of the term depends on the amount borrowed and the franchisee's ability to pay, which is determined through negotiations and a review of a personal financial statement. There is no prepayment penalty associated with the loan. Coffee News will hold the licensed rights to the territories as security until the Promissory Note is paid in full.