What should a prospective Coffee News franchisee do if Coffee News USA does not deliver the disclosure document on time?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
IF COFFEE NEWS USA DOES NOT DELIVER THIS DISCLOSURE DOCUMENT ON TIME OR IF IT CONTAINS A FALSE OR MISLEADING STATEMENT, OR A MATERIAL OMISSION, A VIOLATION OF FEDERAL AND STATE LAW MAY HAVE OCCURRED AND SHOULD BE REPORTED TO THE FEDERAL TRADE COMMISSION, WASHINGTON, DC 20580.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, Coffee News USA must provide the disclosure document to a prospective franchisee 14 calendar days before they sign a binding agreement or make a payment related to the franchise sale. If Coffee News USA fails to deliver the disclosure document on time, or if the document contains false, misleading, or omits material information, it may constitute a violation of federal and state law.
In such a case, the FDD advises that the potential franchisee should report this to the Federal Trade Commission (FTC) in Washington, DC 20580. This ensures that the appropriate authorities are notified of the potential violation, allowing them to investigate and take necessary action to protect the interests of prospective franchisees.
This disclosure requirement is a standard practice in franchising, designed to protect potential franchisees by giving them adequate time to review the franchise agreement and make informed decisions. Failure to comply with this requirement can have legal consequences for the franchisor, and reporting such violations to the FTC is a crucial step in maintaining transparency and fairness in the franchising process.