What is the range of the term length for Coffee News financing, and what factors influence it?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
t Applicable | Not Applicable |
ITEM 10
FINANCING
After one year under your agreement, we may finance additional purchases of franchise territories through Coffee News USA, Inc. at competitive rates and terms pursuant to a Promissory Note. If you want to buy more than one franchise, we may finance for up to three more franchises initially as long as you have good credit and net worth of at least $100,000.00. We also accept all major charge cards in payment. Interest will be at 5% APR (Annual Percentage Rate). The term will vary from two to five years based on the amount borrowed and the ability to pay based on the negotiations and a review of a personal financial statement.
There is no prepayment penalty. We will hold any such licensed rights to the licensed territories granted under the Coffee News License Agreement as security until you have paid your Promissory Note in full. There are no waivers of your legal rights and you are not barred from asserting a defense against us. We have no current practice or interest to sell, assign or discount to a third party all or part of the financing arrangement. If you do not pay on time, you hereby agree that Coffee News can call the loan and demand immediate payment of the full outstanding balance and obtain court costs and attorney's fees if a collection action is necessary. If Publisher / Debtor is a corporation, professional corporation, partnership, limited liability partnership, or a limited liability company, a Guarantee of Performance by the Principal stockholder(s), general partner(s), or member(s), as the case may be, must be executed.
Source: Item 10 — Financing (FDD pages 16–17)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the term length for financing additional franchise territories can vary from two to five years. This is applicable after one year under the initial franchise agreement, and the financing is offered through Coffee News USA, Inc. via a Promissory Note.
The term length is influenced by the amount borrowed and the franchisee's ability to repay the loan. These factors are determined through negotiations and a review of the franchisee's personal financial statement. Interest on the financing is set at 5% APR (Annual Percentage Rate).
For those with excellent credit, verifiable extensive advertising or similar sales experience including entrepreneurial management experience of at least 2 years, may be eligible for full funding for the purchase of a minimum of four or more franchises. The interest rate will be 5% simple interest with weekly payments for principal and interest for up to 48 months and the weekly fees beginning at the start of the fourth month under the agreement by credit or debit card or electronic funds transfer.