How much notice must a Coffee News franchisee provide to terminate the franchise agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| d. Termination by you. | Sections 13.3, 14.1, 14.3 | 120 days notice required. Deposit |
| Exhibit A | is nonrefundable. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 25–27)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, a franchisee must provide 120 days' notice to terminate the franchise agreement. Additionally, the deposit is nonrefundable. This information is found within Sections 13.3, 14.1, and 14.3 of Exhibit A of the franchise agreement.
This requirement means that a Coffee News franchisee who decides to terminate their agreement must continue operating and meeting their obligations for 120 days after giving notice. This period allows Coffee News to find a replacement franchisee or make other arrangements for the territory. The nonrefundable deposit implies that the franchisee will not receive this money back, even upon early termination.
It is important for prospective Coffee News franchisees to understand these termination terms before entering into an agreement. Franchise agreements often include specific notice periods and financial implications for early termination, and the Coffee News agreement is no exception. Franchisees should carefully consider their ability to fulfill the agreement's terms before signing.