What is the minimum net worth required to be considered for Coffee News financing?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
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 th
Source: Item 10 — Financing (FDD pages 16–17)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, a prospective franchisee needs a net worth of at least $100,000 to potentially qualify for financing when purchasing more than one franchise territory. This financing is offered through Coffee News USA, Inc. after the franchisee has been in agreement for one year.
To qualify, the franchisee must also have good credit. The interest rate for this financing is set at 5% APR (Annual Percentage Rate). The term of the loan can vary from two to five years, depending on the amount borrowed and the franchisee's ability to repay the loan, which is determined through negotiations and a review of a personal financial statement.
Coffee News will hold the licensed rights to the franchise territories as security until the promissory note is paid in full. The agreement specifies that there are no prepayment penalties, no waivers of legal rights, and franchisees are not barred from asserting a defense against Coffee News. However, if payments are not made on time, Coffee News has the right to call the loan, demand immediate payment of the outstanding balance, and recover court costs and attorney's fees if a collection action becomes necessary.