When does the monthly payment period begin for a Coffee News loan?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
nd correct. | (the ed the foregoing Schedule B as | | My Commission expires: | Notary Public |
SCHEDULE C PROMISSORY NOTE (An alternative option to SDHCEDULE B)
| $ | , 20 | |
|---|---|---|
| 04401 | [trade in section pay to the order of Coffee News US [1] (the "Holder"), the sum of | address of the Franchisee] doing business name of his business] (the "Debtor") SA, Inc. at 120 Linden St., Bangor, Maine f Dollars sipal") and such other finance charges, in |
| 1. | The payments shall be made as follows | : |
| Principal Amount Financed: Duration of Loan: Start Date of Loan: | $ (months) | |
| Monthly Payment ($25.00/week for each franchised unit): | $ | |
| Total Number of Payments: Principal Amount to be paid: Finance Charges to be paid: Total Cost of the loan: | $ $ $ | |
| month descri contin | ning on, 20 [ n until he/she have paid all of the princ ibed above that he/she may owe under t | on the day of each cal |
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the start date of a Coffee News loan is determined by the agreement between the franchisee (Debtor) and Coffee News US (Holder). The specific date will be written into the agreement. The franchisee will make monthly payments on that day of each calendar month until all principal, interest, and other charges are paid. The monthly payment amount is based on $25.00 per week for each franchised unit.
This means that a prospective Coffee News franchisee who takes out a loan to finance their franchise will need to carefully review the loan agreement to understand when their payments begin. The start date is not a fixed date but is determined on an individual basis. The franchisee should ensure they understand the total cost of the loan, including principal, finance charges, and the total number of payments.
It's important to note that failure to make payments can result in the loss of the franchise. The FDD states that if a franchisee fails to make payments for a period of sixty (60) days from the due date, Coffee News has the option to terminate the franchise. Therefore, understanding the loan terms and payment schedule is crucial for maintaining a Coffee News franchise in good standing.