Can Coffee News sell or assign my financing arrangement to a third party?

According to Coffee News's 2025 Franchise Disclosure Document, Coffee News does not have a current practice or interest in selling, assigning, or discounting your financing arrangement to a third party. However, if you do not pay on time, 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 the 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.

This means that while Coffee News does not currently intend to transfer your financing agreement to another party, they retain the right to pursue legal action and recover associated costs if you default on your payments. The inclusion of a personal guarantee for business entities further emphasizes the franchisor's commitment to ensuring financial obligations are met.

Prospective franchisees should be aware of these conditions and ensure they have a clear understanding of their financial obligations and the potential consequences of default. While the FDD states that Coffee News has no current plans to sell or assign financing arrangements, this does not prevent them from changing this practice in the future, so it is important to consider this possibility.