Under the Coffee News franchise agreement, what section outlines the term of the franchise?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| a. Term of the franchise. | Section 3.1, Exhibit A | 4 year term. |
| b. Renewal or extension of the term. | Section 3.2 Exhibit A | Right to renew agreement for another 4 years if provisions are met. |
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, the term of the franchise is outlined in Section 3.1 and Exhibit A of the franchise agreement. This section specifies that the franchise term is for 4 years.
Additionally, Section 3.2 and Exhibit A describe the conditions for renewal or extension of the franchise term. If the franchisee meets the provisions outlined, they have the right to renew the agreement for another 4 years.
Prospective franchisees should carefully review Sections 3.1 and 3.2, along with Exhibit A, to fully understand the initial term of the agreement and the requirements for renewal. Understanding these terms is crucial for long-term business planning and investment decisions.