To whom are the payments 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 |
-
- The current suggested stand for Coffee News can be purchased for $5.25 each plus shipping from Coffee News USA (total approx. $5.75 each). You have the option to purchase the stands locally if they can be purchased at a lower cost. The number of stands required will directly depend on the number of restaurants/businesses that distribute the Periodical. The above price is based on a distribution network of 50 restaurants/businesses.
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 payments for stands are made either to Coffee News USA or a local vendor. The table in Item 7 indicates that if stands are purchased locally, payment is made to the local vendor. However, Note 4 in Item 7 states that the current suggested stand can be purchased from Coffee News USA for approximately $5.75 each, including shipping.
This means a prospective Coffee News franchisee has two options for acquiring stands: purchasing them from Coffee News USA or sourcing them locally. The choice likely depends on cost and convenience. If a franchisee can find stands locally for less than $5.75 each, it would be more economical to purchase them from a local vendor.
The FDD stipulates that the estimated cost for stands is $500, based on a distribution network of 50 restaurants/businesses. This estimate is part of the initial investment a franchisee should anticipate. The payment is due by the first printing. Franchisees should research local vendors to compare prices with those offered by Coffee News USA to make an informed purchasing decision.