Does Coffee News provide corporate vehicles to shareholders?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
stments are publicly traded, measured at fair market value on a recurring basis and considered level 1.
9. Capital Stock
Coffee News USA has authorized 3,000 shares and 2,000 issued no par shares.
10. Related Party Transactions
The Company provides corporate vehicles to shareholders. Operating personnel are salaried employees. In addition,
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, Coffee News provides corporate vehicles to shareholders. The FDD also states that operating personnel are salaried employees. In addition, Coffee News purchased printing services from Coffee News Printing, a business with one owner in common.
In 2024, Coffee News spent $7,545 on printing services, $7,257 in 2023, and $8,380 in 2022. The document specifies that there are no intercompany transactions or balances other than the printing services agreement.
For a prospective franchisee, this indicates that Coffee News has related-party transactions, specifically with a printing service that shares an owner. While this arrangement is disclosed, it's important for potential franchisees to understand the terms of these related-party transactions and ensure they are conducted at arm's length and do not negatively impact the franchise system. The provision of corporate vehicles to shareholders is also a factor to consider, as it could impact the company's financial resources.