Does Coffee News USA have a right of first refusal to acquire a Coffee News franchisee's business?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| c. Requirements for you to renew or extend. See Note 7(c) for details. | Section 3.2 Exhibit A | Comply with terms in franchise agreement. You may be required to sign a franchise agreement containing terms and conditions that could be materially different from the original franchise agreement. |
| d. Termination by you. | Sections 13.3, 14.1, 14.3 | 120 days notice required. Deposit |
| Exhibit A | is nonrefundable. | |
| e. Termination by Coffee | None, Exhibit A | We will not terminate without cause. |
| News USA without cause. | ||
| 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. |
| i. Your obligations on termination / nonrenewal. | Section 14.3, Exhibit A | You shall return all materials and information relevant to sales and production of Coffee News. |
| j. Assignment of contract by Coffee News USA. | Section 11.1, Exhibit A | Franchise agreement does not specifically restrict or permit us to assign our rights but this section does suggest that it is permitted. |
| k. "Transfer" by you | Sections 11.2, 11.3, 16.4, | Transfers are prohibited unless we |
| definition. | Exhibit A | consent. |
| l. Coffee News USA's | Sections 11.2, 16.4, | Our consent to transfer will not be |
| approval of transfer by you. | Exhibit A | unreasonably withheld. |
| m. Conditions for Coffee News USA's approval of transfers. | Not Applicable | We do not provide conditions for approval of transfers. |
| n. Coffee News USA's right of first refusal to acquire your business. | Sections 11.2; 11.3 Exhibit A | Not applicable. |
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 does not have a right of first refusal to acquire a franchisee's business. Item 17 of the FDD outlines various provisions related to the franchise agreement, including termination, transfer, and dispute resolution.
Specifically, the table within Item 17 addresses whether Coffee News USA has a right of first refusal. The summary states "Not applicable" under the column summarizing Coffee News USA's right of first refusal to acquire your business.
This means that a Coffee News franchisee can transfer their franchise to a third party without first offering Coffee News USA the opportunity to purchase the business. However, franchisees must still obtain consent from Coffee News USA for any transfer, and such consent will not be unreasonably withheld.