To whom is the payment for stands made for a Coffee News franchise?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| STANDS4 | $500.00 | AS | BY FIRST | LOCAL |
| INCURRED | PRINTING | VENDOR |
Source: Item 7 — Estimated Initial Investment (FDD pages 12–14)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the payment for stands is made to either Coffee News USA or a local vendor. The document indicates that the current suggested stand can be purchased for $5.25 each plus shipping from Coffee News USA, totaling approximately $5.75 each. However, franchisees have the option to purchase the stands locally if they can be obtained at a lower cost.
Item 7 outlines the estimated initial investment, including a line item for stands. The table specifies that the payment for stands is made as incurred, by the first printing, to either a local vendor or Coffee News USA. The estimated cost for stands is $500.00.
This provides Coffee News franchisees with some flexibility in sourcing their stands, potentially reducing costs if local vendors offer more competitive pricing. Franchisees should compare prices from Coffee News USA and local vendors to make the most economical choice. The number of stands required will depend on the number of restaurants/businesses that distribute the periodical.