Under what conditions is a change in stock ownership or partnership interest in a Coffee News franchise considered a transfer?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is a corporation or partnership, Franchisee agrees to notify Franchisor of any change in stock ownership or partnership interest in Franchisee while this Agreement is in effect.
Any such change which, together with all prior changes, results in a change of the person or persons having control of the entity shall be a transfer subject to the provisions of this paragraph 10 and its subparagraphs.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, if a Coffee News franchisee is a corporation or partnership, they must inform Coffee News of any changes in stock ownership or partnership interest during the term of the franchise agreement.
Specifically, any single change or series of changes that result in a different person or persons having control of the business is considered a transfer. This transfer is then subject to the standard transfer provisions outlined in the franchise agreement.
This means that if you are a franchisee operating as a corporation or partnership, you need to be aware that even internal changes in ownership can trigger the transfer requirements of the franchise agreement, potentially requiring franchisor approval and other transfer-related procedures.