What does the non-refundable deposit for a Coffee News franchise compensate the franchisor for?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
(USD) per week.
- 2.1.4.4 prices for all other countries in addition to the U.S. and Canada shall be based on USD conversion to the respectful local currencies.
- 2.1.5 Additional Franchises. For any additional franchises granted to Franchisee under a separate licensing agreement, a non-refundable deposit of $7,000.00 to be paid in accordance with Schedule A. However, fol
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, a franchisee who purchases additional franchises under separate licensing agreements must pay a non-refundable deposit. This deposit is $7,000.00 and is to be paid in accordance with Schedule A of the agreement.
It is important to note that this $7,000 deposit is non-refundable, meaning that under most circumstances, the franchisee will not receive this money back, regardless of whether they proceed with the additional franchise. This deposit is required for additional franchises, not the initial franchise. The FDD also states that following the end of the initial term of the agreement, the franchisee will pay a non-refundable deposit equal to the then prevailing rate for new franchisees to purchase an additional franchise.
Prospective franchisees should carefully consider their plans for expansion and the terms of Schedule A before committing to additional franchises, as this deposit represents a significant upfront investment. Understanding the conditions under which the deposit is required and the implications of its non-refundable nature is crucial for financial planning.