Does Coffee News retain rights to the periodical even if the franchise agreement is terminated?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
14. EFFECT OF TERMINATION.
- 14.1 Effect Upon Franchisee's Rights. Upon termination of this Agreement for any reason, all of Franchisee's rights hereunder shall forthwith cease and Franchisee shall not thereafter publish or use the Periodical or any part thereof or the system, names and marks associated with the Periodical in any manner whatsoever.
- 14.2 Continuation of Franchisor's Rights. Upon termination of this Agreement for any cause whatsoever, all rights, title and interest in and to the Periodical shall remain with Franchisor as holder of an exclusive license covering the United States.
- 14.3 Return of Materials. Upon termination of this Agreement for any reason, Franchisee shall return the Operations Manual, all printed and working copies of the Periodical then in existence plus all advertiser lists, present advertiser identities, telephone numbers and addresses, together with all files and records pertinent to such customers in the licensed area, monthly sales records up to the date of termination, all camera-ready artwork in connection with the Periodical, holders and all printed back issues.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, Coffee News retains all rights, title, and interest in the periodical upon termination of the franchise agreement. Specifically, all of the franchisee's rights cease, and the franchisee cannot publish or use the periodical, its system, names, or marks.
This means that if a Coffee News franchise agreement is terminated for any reason, the franchisee loses all rights to the publication. The franchisee must also return the operations manual, all printed copies of the periodical, advertiser lists, sales records, artwork, and back issues to Coffee News.
This provision protects Coffee News's intellectual property and ensures that the brand's integrity and consistency are maintained even after a franchise agreement ends. It is a standard practice in franchising to protect the franchisor's brand and system. This also allows Coffee News to seamlessly transition the territory to a new franchisee or operate it themselves.