Under what conditions can Coffee News USA terminate a Coffee News franchise agreement with cause?
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 with cause if the franchisee breaches or defaults under any provision of the franchise agreement. The FDD states that there are no provisions for defaults which can be cured. Additionally, waivers for prior breaches or defaults are not binding against the same or different breaches or defaults.
This means that if a Coffee News franchisee violates any term of the franchise agreement, Coffee News USA has the right to terminate the agreement. Unlike some franchise systems, Coffee News does not provide an opportunity for franchisees to correct the default. Franchisees must, therefore, ensure strict compliance with all aspects of the agreement to avoid termination.
The fact that waivers for prior breaches are not binding is also significant. Even if Coffee News USA has previously overlooked a franchisee's violation of the agreement, they are not prevented from terminating the agreement for the same or a different violation in the future. This underscores the importance of ongoing compliance with the franchise agreement.
Prospective franchisees should carefully review the franchise agreement to understand all the obligations and potential grounds for termination. It would be prudent to seek legal counsel to fully understand the implications of these termination provisions before investing in a Coffee News franchise.