Does Schedule C for Coffee News specify which party is responsible for obtaining consent for assignment?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
trike, fire, flood, governmental acts, orders or restrictions, or any other reason where failure to perform is beyond the control and not caused by the negligence of the non-conforming party.
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- The parties agree that neither party may assign or transfer any rights and obligations under this Schedule B, directly or indirectly except upon the prior written consent of the other party. Subject to the foregoing, this Schedule B shall be binding upon and inure to the benefit of the parties hereto, their successors and assigns.
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- If any provision of this Schedule B is held to be invalid by a court of competent jurisdiction, then the remaining provisions shall nevertheless remain in full force and effect.
The undersigned hereby acknowledges receipt of a filled-in copy of this Schedule B, the Promissory Note, and Exhibit A to this Promissory Note (the Guaranty of Performance), which is incorporated as party of this Schedule B by reference. The undersigned acknowledges and agrees that he/she has read and understand the entire Schedule B and that he/she has been offered an opportunity to obtain legal consultation in connection with the Schedule B and the Promissory Note contained herein before his/her signature.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
Based on the 2025 Coffee News Franchise Disclosure Document, Schedule C is related to a Guaranty of Performance, and the excerpts provided do not contain specific details about which party is responsible for obtaining consent for assignment within Schedule C. However, Schedule B, related to the Promissory Note, states that neither party may assign or transfer any rights and obligations without the prior written consent of the other party.
Item 8.14 discusses the sale of a Coffee News franchise by the franchisee, stating that the franchisee agrees not to pledge or encumber the agreement without the express written approval of the franchisor, which can be requested if the franchisee seeks to sell the franchise to a third party who wants to use it as collateral for purchase financing. The franchisor has the authority to extend the term of the agreement to enable a purchaser to obtain financing if the franchisor deems it necessary.
Since the FDD excerpts do not specify which party is responsible for obtaining consent for assignment within Schedule C, it is recommended that a prospective Coffee News franchisee ask the franchisor for clarification on this matter. Understanding the specific requirements and procedures for assignment is crucial for any future transfer of rights and obligations under the franchise agreement.