What is the maximum upward adjustment allowed for Coffee News weekly fees each year?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| the term of this Agreement, the weekly fees may be adjusted upward or downward by | |||||
|---|---|---|---|---|---|
| Franchisor, subject to a maximum increase equal to the increase in the “Consumer Price | |||||
| Index of Urban | Wage Earners | and Clerical | Workers- (CPI-W, | 1982-1984 | - 100)” |
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the weekly fees may be adjusted by Coffee News, either upward or downward. The maximum increase is tied to the increase in the Consumer Price Index of Urban Wage Earners and Clerical Workers (CPI-W, 1982-1984 = 100).
For a prospective Coffee News franchisee, this means that the weekly fees they pay to Coffee News could increase over time, but the increase is capped by the CPI-W. The CPI-W is a measure of the average change over time in the prices paid by urban wage earners and clerical workers for a basket of consumer goods and services. This protects the franchisee from arbitrary or excessive fee increases.
It is important for potential franchisees to monitor the CPI-W to understand the potential for fee increases. They should also discuss with Coffee News how often these adjustments are made and what the historical trends have been. This information can help them better forecast their operating expenses and profitability.