Will Coffee News USA unreasonably withhold consent for a Coffee News franchisee's transfer request?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| 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. |
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's consent to a franchisee's transfer request will not be unreasonably withheld. This is a positive assurance for prospective franchisees, indicating that Coffee News is willing to allow the transfer of ownership under reasonable circumstances.
This provision protects franchisees from being unfairly prevented from selling their business. However, the FDD does not provide specific conditions for approval of transfers.
It is important for a potential franchisee to understand what Coffee News considers 'unreasonable' in the context of transfer requests. A prospective franchisee should ask Coffee News for examples of situations where a transfer request might be denied to fully understand their obligations and rights regarding business transfers.