Does Coffee News waive any legal rights in the financing arrangement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
There is no prepayment penalty. We will hold any such licensed rights to the licensed territories granted under the Coffee News License Agreement as security until you have paid your Promissory Note in full. There are no waivers of your legal rights and you are not barred from asserting a defense against us. We have no current practice or interest to sell, assign or discount to a third party all or part of the financing arrangement. If you do not pay on time, you hereby agree that Coffee News can call the loan and demand immediate payment of the full outstanding balance and obtain court costs and attorney's fees if a collection action is necessary. If Publisher / Debtor is a corporation, professional corporation, partnership, limited liability partnership, or a limited liability company, a Guarantee of Performance by the Principal stockholder(s), general partner(s), or member(s), as the case may be, must be executed.
Source: Item 10 — Financing (FDD pages 16–17)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, there are no waivers of legal rights required of the franchisee in the financing arrangement. The FDD states that a franchisee is not barred from asserting a defense against Coffee News. This means that if Coffee News provides financing for additional franchise territories, the franchisee retains their legal rights and can still raise defenses against Coffee News in any dispute related to the financing.
Coffee News may finance additional purchases of franchise territories through Coffee News USA, Inc. after one year under the agreement. The interest rate is set at 5% APR (Annual Percentage Rate). The term will vary from two to five years based on the amount borrowed and the ability to pay based on negotiations and a review of a personal financial statement. There is no prepayment penalty.
Coffee News will hold any such licensed rights to the licensed territories granted under the Coffee News License Agreement as security until the Promissory Note is paid in full. If a franchisee does not pay on time, they agree that Coffee News can call the loan and demand immediate payment of the full outstanding balance and obtain court costs and attorney's fees if a collection action is necessary. If the Publisher / Debtor is a corporation, professional corporation, partnership, limited liability partnership, or a limited liability company, a Guarantee of Performance by the Principal stockholder(s), general partner(s), or member(s), as the case may be, must be executed.