Are there any exceptions to the requirement of a written document for amendments to the Coffee News franchise agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees not to pledge or encumber this Agreement except with the express written approval of Franchisor, to be granted in the Franchisor's sole discretion, which Franchisee may request in the event that Franchisee seeks to sell the Franchise granted hereunder to a third party who desires to use said Franchise as collateral for purchase financing.
Franchisor shall have the authority to extend the term of this Agreement beyond the term set forth in paragraph 3 to enable a purchaser of the Franchise to obtain financing of said purchase if Franchisor, in his sole discretion, determines such extension to be necessary.
Franchisee may request approval of the use of the Franchise granted hereunder as collateral and/or the extension of the term of this Agreement by written request sent to address provided under paragraph 14.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
Based on the 2025 Coffee News Franchise Disclosure Document, any modifications or amendments to the franchise agreement generally require written consent from Coffee News. One specific instance highlighted is in regards to pledging or encumbering the agreement, which necessitates express written approval from Coffee News. This requirement ensures that all parties are clear on any changes to the agreement and that there is a documented record of the amendments.
Another instance where written documentation is essential is when a franchisee seeks to sell their franchise to a third party who intends to use the franchise as collateral for purchase financing. In such cases, the franchisee must obtain written approval from Coffee News to pledge the agreement. Furthermore, if the franchisor deems it necessary, they have the authority to extend the term of the agreement to facilitate the purchaser's financing, emphasizing the importance of written agreements for any modifications to the original terms.
While the FDD excerpts emphasize the necessity of written consent for specific actions like pledging the agreement or transferring the franchise, it does not explicitly address whether there are ANY exceptions to the written requirement for amendments. A prospective franchisee should seek clarification from Coffee News regarding any potential exceptions to this rule to fully understand the amendment process and ensure compliance with the franchise agreement.