How often does Coffee News recognize revenues related to local advertising sales?

According to the 2025 Coffee News FDD, the company recognizes revenue from royalty payments, training fees, and product promotional sales monthly, as these are earned at a specific point in time. However, the document does not specifically state how frequently Coffee News recognizes revenues from local advertising sales. Instead, it generally mentions that revenues from franchise sales are recognized over the term of the initial franchise agreement, which is typically four years, as Coffee News provides franchisees with weekly content and support as per the franchise agreement.

For a prospective Coffee News franchisee, this means that while the FDD details the revenue recognition for royalties, training, franchise sales, and promotional items, it lacks specific information on how advertising revenue is handled. Given that franchisees will be directly involved in selling local advertising space, understanding the revenue recognition timeline is crucial for financial planning and forecasting.

Therefore, it is important for potential franchisees to ask Coffee News for clarification on how and when revenue from local advertising sales is recognized. Understanding this will help in accurately projecting income and managing cash flow, as advertising sales are a primary revenue stream for franchisees.