When are payments for the sale of Coffee News franchises and monthly royalties due?
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.
- 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, following the end of the initial term of this Agreement, Franchisee shall pay a non-refundable deposit equal to the then prevailing rate for new franchisees to purchase an additional franchise.
- 2.1.6 Method of Payment. Except as provided in Schedule A, payment by Franchisees of weekly fees beginning with the fourth month term of this Agreement shall be made by credit card or check or optionally, by preauthorized automatic debit to the Franchisees demand deposit account, when available.
- 2.1.7 Adjustment of Weekly Fees.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, initial franchise fees and payments are due in full once Coffee News has completed all pre-opening obligations as outlined in the franchise agreement.
For franchisees who opt to publish a digital version of the periodical, there is a one-time enrollment fee. This fee is $100 for Chil Consulting and $75 for Shadowfox Design, payable upon enrollment. Additionally, if a franchisee wishes to postpone their business's start date by a month or more, they must pay Coffee News an additional $1,000 to hold their area during the extension period before the full amount under the agreement is due.
Weekly fees for the first Coffee News franchise are $80 per week for the hardcopy periodical, starting after the initial period. For additional franchises, the weekly fee is $25 per franchise, beginning after the first nine months of operation, as detailed in Schedule A. For Coffee News Online, the weekly fee is $25 for the Basic Service and $50 for the Premium Service. Prices for countries outside the U.S. and Canada are based on USD conversion to local currencies.
Failure to make payments for additional deposits or weekly fees within 60 days of the due date, as per Schedule A, may result in the loss of all franchises and termination of the periodical receipt, at Coffee News's discretion.