factual

How much of the Coffee News deposit is due before the franchise agreement draft?

Coffee_News Franchise · 2025 FDD

Answer from 2025 FDD Document

must be made in the following manner:

  • $ 500.00 is to be paid before draft of the Franchise agreement
  • $ 9,400.00 is to be paid upon signing of the Franchise agreement
  • $ 9,900.00 TOTAL

All initial fees and payments owed by franchisees shall be due in full upon our completion of all pre-opening obligations under the franchise agreement.

Source: Item 23 — Receipts (FDD pages 36–118)

What This Means (2025 FDD)

According to the 2025 Coffee News Franchise Disclosure Document, all initial fees and payments, including the deposit for additional franchises, are due in full upon Coffee News's completion of all pre-opening obligations under the franchise agreement. For any additional franchises granted to a franchisee under a separate licensing agreement, the non-refundable deposit is $7,000.00, to be paid in accordance with Schedule A.

This means that a prospective Coffee News franchisee does not need to pay the deposit until Coffee News has fulfilled its pre-opening obligations. These obligations would typically include things like site selection assistance, providing training, and supplying initial marketing materials.

However, failure to make payment of either the deposit for additional franchises or weekly fees in accordance with Schedule A for a period of sixty (60) days from the due date may result in the loss of all franchises and termination of receipt of the Periodical by Franchisee, at the option of Franchisor. It is important for prospective franchisees to understand what constitutes completion of pre-opening obligations and to ensure they have the funds available when the deposit becomes due.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.