Under what circumstances can Coffee News USA terminate a Coffee News franchise agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| f. Termination by Coffee News USA with cause. | Section 13.1, Exhibit A | We can terminate if you breach or default under any provision of the franchise agreement. |
| g. "Cause" defined defaults | None, Exhibit A | There exists no provisions for |
| which can be cured. | defaults which may be cured. | |
| h. "Cause" defined defaults that cannot be cured. | Sections 13.1, 13.2, Exhibit A | Waivers for prior breaches or defaults are not binding against same or different breaches or defaults. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 25–27)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, Coffee News USA can terminate a franchise agreement if the franchisee breaches or defaults under any provision of the franchise agreement. The FDD specifies that Coffee News USA will not terminate the agreement without cause.
Notably, the FDD indicates that there are no provisions for defaults that can be cured. This means that any breach or default, regardless of its severity or potential for resolution, could be grounds for termination by Coffee News USA.
The FDD also states that waivers for prior breaches or defaults are not binding against the same or different breaches or defaults. This implies that Coffee News USA's leniency or failure to act on a previous breach does not prevent them from terminating the agreement for a similar or different breach in the future. Prospective franchisees should carefully review the franchise agreement to understand what constitutes a breach or default and the potential consequences.