What methods of payment are acceptable for weekly fees for a Coffee News franchise?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.1.6 Method of Payment. Except as provided in Schedule A, payment by Franchisees of weekly fees beginning with the fourth month term of this Agreement shall be made by credit card or check or optionally, by preauthorized automatic debit to the Franchisees demand deposit account, when available.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, franchisees have several options for paying their weekly fees. Payments can be made via credit card, check, or, where available, through preauthorized automatic debit to the franchisee's demand deposit account. These payment methods become applicable starting in the fourth month of the franchise agreement.
It is important to note that the weekly fees are subject to potential adjustments. Commencing on March 1st of each year, Coffee News may adjust the weekly fees, either upward or downward. However, any increase is capped at the increase in the Consumer Price Index of Urban Wage Earners and Clerical Workers (CPI-W) as published by the Bureau of Labor Statistics. This adjustment is calculated based on the percentage change in the CPI-W from the first day of the term year immediately prior to the current term year to the first day of the current term year.
Failure to make timely payments can have serious consequences for a Coffee News franchisee. If weekly fees are not paid in accordance with Schedule A for a period of sixty (60) days from the due date, Coffee News has the option to terminate all franchises and cease providing the Periodical to the franchisee, unless otherwise prohibited by law. This underscores the importance of adhering to the payment schedule outlined in the franchise agreement to maintain good standing and avoid potential penalties.