Does Schedule C for Coffee News define what constitutes 'reasonable expenses of collection'?

According to the 2025 Coffee News Franchise Disclosure Document, Schedule B, which is referenced in Exhibit A to Schedule B and/or Schedule C, addresses the costs and reasonable expenses of collection. Specifically, if a Promissory Note isn't paid when due and Coffee News places it with an agent or attorney for collection, the franchisee is responsible for covering these costs.

The FDD specifies that these costs include, but are not limited to, reasonable attorney's fees. However, it does not provide a comprehensive definition or a specific formula for determining what constitutes 'reasonable expenses of collection.' This lack of a precise definition could lead to ambiguity or disputes regarding the amount a franchisee might be required to pay in the event of collection proceedings.

Prospective Coffee News franchisees should seek clarification from the franchisor regarding the factors considered when determining 'reasonable expenses of collection.' Understanding how these expenses are calculated and what specific types of costs are included can help franchisees better assess their potential financial obligations and risks associated with the franchise agreement.