When does the required purchase from Coffee News Printing LLC begin?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
However, the required purchase from Coffee News Printing LLC will not occur until after you open for business.
Franchisee acknowledges and agrees that it will purchase the printing services from Coffee News Printing, LLC in Bangor, Maine for a minimum period of one (1) year from the date of this Agreement.
If Franchisor provides Franchisee with financing to purchase minimum of four or more franchised units, subject to the initial payment of the training fees referenced in Paragraph 10 hereof, Franchisee agrees that it shall use the printing services of Coffee News Printing, LLC during the term of the loan.
In 2024, the affiliate Coffee News Printing LLC's total revenue was $444,936 and the required revenue derived from Coffee News publishers for the fiscal year 2024 was $4,233
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 14–15)
What This Means (2025 FDD)
According to the 2025 Coffee News FDD, the requirement to purchase printing services from Coffee News Printing LLC begins after you open for business. Specifically, franchisees must purchase printing services from Coffee News Printing, LLC in Bangor, Maine, for a minimum of one year from the date of the Franchise Agreement. After this initial year, franchisees have the option to continue using Coffee News Printing, LLC or switch to another print shop.
However, there's an exception if Coffee News provides financing to purchase a minimum of four franchised units. In this case, the franchisee must use the printing services of Coffee News Printing, LLC for the entire term of the loan. This condition is tied to the financing arrangement and ensures Coffee News Printing, LLC receives revenue during the loan period.
In 2024, the affiliate Coffee News Printing LLC's total revenue was $444,936, with $4,233 derived from required purchases from Coffee News publishers, representing .95% of its total revenue. This indicates that while the printing requirement exists, it constitutes a small portion of Coffee News Printing LLC's overall revenue. Prospective franchisees should consider these requirements and the associated costs when evaluating the Coffee News franchise opportunity.