What specific Consumer Price Index is used for adjusting Coffee News weekly fees?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| the term of this Agreement, the weekly fees may be adjusted upward or downward by | |||||
|---|---|---|---|---|---|
| Franchisor, subject to a maximum increase equal to the increase in the “Consumer Price | |||||
| Index of Urban | Wage Earners | and Clerical | Workers- (CPI-W, | 1982-1984 | - 100)” |
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News' 2025 Franchise Disclosure Document, the weekly fees may be adjusted during the term of the agreement. The adjustment can be upward or downward, and is subject to a maximum increase equal to the increase in the “Consumer Price Index of Urban Wage Earners and Clerical Workers- (CPI-W, 1982-1984 - 100)”.
For a prospective Coffee News franchisee, this means that the weekly fees they pay to the franchisor could fluctuate based on changes in the CPI-W. The CPI-W is a measure of the average change over time in the prices paid by urban wage earners and clerical workers for a market basket of consumer goods and services. The reference period for this index is 1982-1984, which is set to an index value of 100.
It is important to note that the adjustment to the weekly fees is subject to a maximum increase equal to the increase in the CPI-W. This provides some protection to the franchisee, as the weekly fees cannot increase by more than the rate of inflation as measured by the CPI-W. The adjustment can also be downward, which could benefit the franchisee if the CPI-W decreases. Franchisees should monitor the CPI-W to understand potential changes to their weekly fees.