What is the source of the population/restaurant guideline used by Coffee News for territory determination?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
- Prior to purchasing any territories and to signing an agreement with us and to paying the Initial franchise fees, you and we will agree on the boundaries of your exclusive distribution territory that will optimally have a population of 25,000 to 50,000 total and 25 to 40 active restaurants (Franchise Agreement Section 1.1). Since no territory may overlap another, we will research the territory that you wish to service to determine if all or part of it is currently serviced by us or any of our franchises. We usually approve an area where you wish to publish if it does not overlap another where an existing publisher operates. We will also research population and commerce figures to determine the number of people and the number of restaurants that are contained within the proposed territory. This population/restaurant guideline is based on discussions with existing franchises in the U.S. and Canada and considers information from our 5 company-owned franchises. Upon signing the franchise agreement, you will have exclusive rights to distribute your editions of Coffee News within the agreed territory. It is important to note that you may solicit and accept advertisements from any source inside or outside your territory since the agreement limits only your distribution rights.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 17–21)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the population and restaurant guidelines used to determine territory size are based on the company's experience with existing franchises. Specifically, Coffee News uses information gathered from discussions with current franchisees in the U.S. and Canada. In addition, the franchisor considers data from its five company-owned franchises when establishing these guidelines.
Prior to signing a franchise agreement and paying any initial franchise fees, Coffee News will agree with the franchisee on the boundaries of their exclusive distribution territory. The optimal territory size typically includes a population of 25,000 to 50,000 people and 25 to 40 active restaurants. Coffee News researches the potential territory to ensure it does not overlap with existing franchises.
This approach allows Coffee News to leverage the real-world experiences and performance data of its existing franchise network and company-owned operations to create territory guidelines. These guidelines aim to provide new franchisees with a reasonable opportunity for success, based on population density and the availability of potential advertising clients (restaurants).