What is the payment schedule for franchise sales and royalty collections for Coffee News franchisees?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
must be made in the following manner:
- $ 500.00 is to be paid before draft of the Franchise agreement
- $ 9,400.00 is to be paid upon signing of the Franchise agreement
- $ 9,900.00 TOTAL
All initial fees and payments owed by franchisees shall be due in full upon our completion of all pre-opening obligations under the franchise agreement.
- 2.1.2 In addition to the publication of hardcopy format of Periodical, Franchisee shall have the option to publish the digital format of the Periodical ("Coffee News Online"). A onetime enrollment fee to participate publication of Coffee News Online, in the amount of $100.00 for Chil Consulting and $75.00 for Shadowfox Design, shall be paid upon enrollment.
- 2.1.3 Postponement Fees. In the event that Franchisee wishes to postpone the start date of Franchisee's business by one month or more, Franchisee needs to pay for additional $1,000.00 to us to obtain such extension and hold Franchisee's area for such one or more months before Franchisee pays the full amount due under the Agreement.
- 2.1.4 Weekly Fees. For the first Franchise granted to Franchisee, weekly payments of:
- 2.1.4.1 for hardcopy Periodical, $80 per week beginning upon the conclusion of the Initial Period. In the case of multiple franchises granted to Franchisee under separate licensing agreements, weekly payments of $25 per week for each additional franchise purchased, to be charged for each week beginning after the first nine (9) months of Franchisee's operation in accordance with Schedule A.
- 2.1.4.2 for Coffee News Online Basic Service (as later identify and defined in Paragraph 4.5.1), $25.00 (USD) per week.
- 2.1.4.3 for Coffee News Online Premium Service (as later identified and defined in Paragraph 4.5.2), $50.00 (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.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, all initial fees and payments are due upon completion of all pre-opening obligations. For the first Coffee News franchise, franchisees must make weekly payments of $80 for the hardcopy periodical, which begin after the initial period. If a franchisee purchases multiple franchises under separate licensing agreements, the weekly payments are $25 per week for each additional franchise, starting after the first nine months of operation, as detailed in Schedule A.
Coffee News also offers online service options with their own weekly fees. The Coffee News Online Basic Service has a weekly fee of $25, while the Premium Service is $50 per week. These fees are in USD, and prices for countries outside the U.S. and Canada are based on the USD conversion to the local currencies.
If a Coffee News franchisee wishes to postpone their business start date by one month or more, they must pay an additional $1,000 to obtain the extension and hold their area. Additionally, for any extra franchises granted under a separate licensing agreement, a non-refundable deposit of $7,000 is required, payable according to Schedule A. Failure to make payments for additional deposits or weekly fees within sixty days of the due date may result in the loss of all franchises and termination of the periodical receipt, at Coffee News's discretion.
Prospective Coffee News franchisees should carefully review Schedule A, as referenced in the FDD, to fully understand the specific payment schedules and any associated conditions. Understanding these payment terms is crucial for managing cash flow and ensuring compliance with the franchise agreement.