What is the total cost for a Coffee News franchisee to acquire additional franchises, considering the financing options (Item 10) and the weekly fees for additional franchises (Item 6)?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
igations.
ITEM 6
OTHER FEES
| Name of Fee | Amount | Due Date | Remarks | |---|---|---|---| | Weekly - Initial Franchise for hardcopy Periodical (See note 1) | $80 | fee begins on the first day of the third month following the month the initial franchise agreement was signed ("the fourth month of the agreement") and continues monthly | paid to us by credit / debit cards, check, or by PayPal | | Name of Fee Weekly - Additional Franchises for hardcopy Periodical | Amount $25 / additional franchise | Due Date the fee on the first 5 additional franchises is due to us on the first day of the tenth month following the month the initial franchise agreement was signed (i.e., the | Remarks paid to us by credit / debit cards, check, or by PayPal | | (agreed to upon signing the initial franchise agreement) | | tenth month of the agreement) and every 6 months thereafter for each additional group of 5 or less franchises. | | | Initial - Additional Franchises (agreed to after signing the initial franchise agreement) | $7,000.00/ additional franchises | the fee on the additional franchises is due at the signing of the agreement. | paid to us directly when due | | Coffee News Online Basic Service | $25.00 | The fee is due to us on the first day of the month following the prior month services | paid to us by credit / debit cards, check, or by PayPal | | Coffee News Online Premium Service | $50.00 | The fee is due to us on the first day of the month following the prior month services | paid to us by credit / debit cards, check, or by PayPal | | Transfer Fee | $2,900.00 | The fee is due by the transfer closing date. | paid to Coffee News College when due | This schedule is designed to allow you ample time to put your entire territory into operation before you reach the maximum weekly fee requirement. See Note 1.
After every 6 months, you have the option to return the remainder of your franchise if you are unable to put the franchises into operation. If your franchises are not in operation but you desire to maintain possession of the franchises, you may pay the next level of weekly fees. There are no other fees, including no additional initial or renewal fees and no fees for transfer of ownership or interest in your franchise(s).
All fees are imposed and collected by us.
All fees mentioned above are non-refundable.
All fees are uniformly applied.
No franchisor-owned outlets have controlling voting power to disclose the maximum and minimum fees that may be imposed.
We reserve the right to adjust the weekly fees based on the annual change, in the March of each year, consumer price index.
Note:
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the cost to acquire additional franchises includes an initial fee and ongoing weekly fees. The initial fee for each additional franchise is $7,000, due at the signing of the agreement for the additional franchise.
Item 10 describes financing options for additional franchise purchases. After one year under the initial agreement, Coffee News USA, Inc. may finance additional franchise territories at competitive rates and terms through a Promissory Note. If a franchisee has good credit and a net worth of at least $100,000, Coffee News may finance up to three additional franchises initially. The interest rate is 5% APR, and the term varies from two to five years based on the amount borrowed and the ability to pay. For those with excellent credit and verifiable advertising or similar sales experience, full funding may be available for the purchase of a minimum of four or more franchises, subject to the initial payment of the training fee as explained in Item 11.
In addition to the initial franchise fee, there are weekly fees for additional franchises. The weekly fee for each additional hardcopy franchise is $25, beginning after the first nine months of the franchisee's operation. These fees are paid to Coffee News by credit/debit cards, check, or PayPal. Therefore, the total cost includes the initial franchise fee of $7,000 per additional franchise, plus ongoing weekly fees of $25 per additional franchise after the initial nine-month period. The financing options can help franchisees manage the initial investment, but the weekly fees represent an ongoing operational cost.