What specific services are prohibited for a Coffee News franchisee to perform for a competing publication during the non-competition period?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement and for a period of two (2) Years after the termination, expiration, transfer, or assignment of this Agreement, Franchisee, either as individuals or a business entity, their family members or the officers, directors, other key personnel, employees or stockholders, as the case may be, shall not directly or indirectly, through corporations, partnerships, trusts, associations, joint ventures, or unincorporated businesses, perform any services for, engage in or acquire, be an employee of, have any financial, beneficial, or equitable interest in, or have any interest whatsoever in any publication of a type similar to the Periodical that operates within the region covered by this agreement .
Franchisee shall execute a non-competition agreement with its employees, officers, key personnel, agents, or stockholders, as the case may be, that such employees, officers, key personnel, agents, or stockholders, as the case may be, shall be bound by the contractual provisions contained in this paragraph, and will be liable for damages caused by violation of the provision contained herein plus reasonable attorney fees and court cost if the Franchisor and/or Franchisee has to enforce their contractual rights by legal actions.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, during the term of the agreement and for two years after termination, expiration, transfer, or assignment, a franchisee cannot directly or indirectly perform services for or have any interest in a similar publication operating within their region. This restriction applies to the franchisee, their family members, or any business entity they are associated with, including officers, directors, key personnel, employees, or stockholders.
This non-compete clause prevents a Coffee News franchisee from using the knowledge and experience gained while operating their franchise to benefit a competing publication. The restriction extends to various forms of involvement, including being an employee, having a financial interest, or any other type of interest in a competing publication. This is a fairly standard practice in franchising to protect the brand and business model.
Coffee News also requires franchisees to have their employees, officers, key personnel, agents, or stockholders sign a non-competition agreement. This ensures that those working for the franchisee are also bound by the same restrictions, preventing them from contributing to a competing publication. If these individuals violate the non-competition agreement, they can be held liable for damages, attorney fees, and court costs.
This provision aims to protect Coffee News's market position and confidential information by preventing franchisees and their associates from supporting rival publications within the same geographic area for a defined period after their involvement with the franchise ends.