How much of the Coffee News deposit is due upon signing the franchise agreement?
Coffee_News Franchise · 2025 FDDAnswer 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 Coffee News's 2025 Franchise Disclosure Document, all initial fees and payments owed by franchisees are due in full upon completion of all pre-opening obligations under the franchise agreement. For any additional franchises granted to the franchisee under a separate licensing agreement, a non-refundable deposit of $7,000.00 is to be paid in accordance with Schedule A.
This means that a prospective Coffee News franchisee does not need to pay any amount upon signing the franchise agreement. The initial fees are due only when Coffee News has completed all of its pre-opening obligations. However, if a franchisee is purchasing additional franchises, a $7,000 deposit is required, with the payment schedule outlined in Schedule A.
It is important for a prospective franchisee to carefully review Schedule A to understand the specific payment terms and deadlines for the $7,000 deposit on additional franchises. Additionally, franchisees should confirm with Coffee News what constitutes the completion of pre-opening obligations to understand when the initial fees are due.