How are payments made for full funding for the purchase of Coffee News franchises?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
For those with excellent credit, as evidenced by a credit report from Equifax, Experian or Transunion or similar credit rating agencies in other countries, and with verifiable extensive advertising or similar sales experience including entrepreneurial management experience of at least 2 years, you may be eligible for full funding for the purchase of a minimum of four or more franchises, subject to the initial payment of the training fee as more fully explained in Item 11. You will be required to attend the next Coffee News College at the time of purchase, and you will be required to use the printing services of Coffee News Printing, Inc. during the term of the loan. The interest rate will be 5% simple interest with weekly payments for principal and interest for up to 48 months and the weekly fees beginning at the start of the fourth month under the agreement by credit or debit card or electronic funds transfer in accordance with Item 6, (Other Fees).
Source: Item 10 — Financing (FDD pages 16–17)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, full funding for purchasing a minimum of four franchises is available to those with excellent credit and at least two years of verifiable advertising or similar sales experience, including entrepreneurial management experience. Payments are made weekly by credit or debit card, or via electronic funds transfer, beginning in the fourth month of the agreement. The interest rate is 5% simple interest, and payments cover both principal and interest for up to 48 months. Franchisees obtaining financing for full funding to purchase a minimum of four franchises must attend the next Coffee News College at the time of purchase. They are also required to use the printing services of Coffee News Printing, Inc. during the term of the loan.
Coffee News also accepts all major charge cards for payments. After one year under the agreement, Coffee News may finance additional franchise territory purchases through Coffee News USA, Inc. at competitive rates and terms pursuant to a Promissory Note. If a franchisee wants to buy more than one franchise, Coffee News may finance up to three more franchises initially as long as the franchisee has good credit and a net worth of at least $100,000.00. Interest will be at 5% APR (Annual Percentage Rate). The term will vary from two to five years based on the amount borrowed and the ability to pay based on the negotiations and a review of a personal financial statement.
If a franchisee does not pay on time, Coffee News can call the loan and demand immediate payment of the full outstanding balance, and obtain court costs and attorney's fees if a collection action is necessary. If the Publisher / Debtor is a corporation, professional corporation, partnership, limited liability partnership, or a limited liability company, a Guarantee of Performance by the Principal stockholder(s), general partner(s), or member(s), as the case may be, must be executed. Coffee News will hold any such licensed rights to the licensed territories granted under the Coffee News License Agreement as security until the Promissory Note has been paid in full.