How much of the Coffee News deposit is to be paid before the draft of the Franchise agreement?

The 2025 Coffee News Franchise Disclosure Document (FDD) states that all initial fees and payments owed by franchisees are due in full upon the completion of all pre-opening obligations by Coffee News under the franchise agreement. This implies that no portion of the deposit is explicitly required before the draft of the franchise agreement itself. Instead, the payment is tied to Coffee News fulfilling its pre-opening responsibilities.

For a prospective Coffee News franchisee, this means that the payment schedule is linked to the franchisor's actions in preparing the franchisee to launch their business. This could be advantageous as it aligns payment with tangible progress. However, it's crucial to understand exactly what constitutes "completion of all pre-opening obligations" to anticipate when the fees will be due.

It is important for potential franchisees to carefully review the franchise agreement and discuss with Coffee News the specific pre-opening obligations and their associated timelines. This will help in planning finances and ensuring that funds are available when required. Additionally, franchisees should be aware of the potential consequences of failing to make timely payments, as this could lead to the loss of the franchise.