How promptly must a Coffee News franchisee pay taxes, accounts, and indebtedness?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.2 Payment of Debts: Adverse Action. Franchisee shall pay promptly when due all taxes, accounts, and indebtedness of any kind incurred by Franchisee in the conduct of its business unless being contested actively in good faith. Franchisee shall pay any tax assessed by any State or other taxing authority in Franchisee's designated region on fee payments to or other revenue received by Franchisor from Franchisee. Franchisee agrees to notify Franchisor in writing within five days of the commencement of any action, suit, or proceeding which, if decided adversely to Franchisee, would materially and adversely affect Franchisee's financial condition and to notify Franchisor within five days of the issuance of any order, writ, injunction, award, or decree of any court, agency or other governmental instrumentality which adversely affects Franchisee's financial condition.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, franchisees are required to pay all taxes, accounts, and indebtedness promptly when due. The only exception to this rule is if the franchisee is actively contesting these obligations in good faith.
Additionally, the Coffee News franchisee must notify the franchisor in writing within five days if any action, suit, or proceeding commences that could adversely affect the franchisee's financial condition. Similarly, the franchisee must inform Coffee News within five days of any order, writ, injunction, award, or decree from a court or government agency that negatively impacts their financial condition.
These requirements ensure that Coffee News franchisees maintain financial stability and meet their financial obligations in a timely manner, unless there is a legitimate dispute. This protects both the franchisee's business and the overall reputation of the Coffee News franchise system.