factual

How much of the initial Coffee News franchise fee is allocated for document preparation?

Coffee_News Franchise · 2025 FDD

Answer from 2025 FDD Document

ITEM 5**

INITIAL FRANCHISE FEE

You must pay an initial franchise fee of $9,900.00 for the first franchise that is due upon signing the initial franchise agreement, $500.00 of which must be paid to us for document preparation including without limitation draft of the franchise agreement. The $500.00 shall be deducted from $9,900.00 upon signing the initial franchise agreement. For this, you will receive weekly copy within 14 days of signing the agreement with additional copy mailed in 8-week increments (no later than 5 business days prior to the end of the following 8-week period) which effectively represents reimbursement for weekly copy during the initial 3-month period of the agreement. Agreements may include up to the maximum 20 franchises permitted per publisher. A fee of $7,000.00 for each additional franchise is due at the time of signing the agreement for additional franchise(s). Upon our sole discretion, we may offer short term sales promotions to existing Publishers who wish to purchase additional franchise unit(s) from time to time. In the event that you notify us that you wish to revise the start date of business and postpone it by one month or more subsequent to your receipt of the initially executed franchise agreement, you need to pay for additional $1,000.00 to us to obtain such extension and hold your proposed licensed area for such one or more months before you pay the full amount due under the agr

Source: Item 5 — Initial Fees (FDD page 10)

What This Means (2025 FDD)

According to the 2025 Coffee News Franchise Disclosure Document, the initial franchise fee is $9,900. Of this amount, $500 is specifically designated for document preparation, including drafting the franchise agreement. This $500 is deducted from the total $9,900 initial franchise fee upon signing the agreement.

In return for this initial fee, Coffee News provides the franchisee with weekly copy within 14 days of signing the agreement. Additional copy is mailed in 8-week increments, arriving no later than 5 business days before the end of each subsequent 8-week period. This arrangement effectively reimburses the franchisee for the weekly copy provided during the initial 3-month period of the agreement.

It's important to note that all fees paid to Coffee News are non-refundable. Additionally, the document mentions that agreements may include up to the maximum 20 franchises permitted per publisher, with a fee of $7,000 for each additional franchise.

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.