Can the weekly fees for a Coffee News franchise be adjusted downward during the term of the agreement?

According to the 2025 Coffee News Franchise Disclosure Document, the weekly fees can be adjusted during the term of the agreement. Commencing on March 1 of each year, Coffee News has the right to adjust the weekly fees, either upward or downward. However, any increase is subject to a maximum, which is tied to the increase in the Consumer Price Index of Urban Wage Earners and Clerical Workers (CPI-W) published by the Bureau of Labor Statistics U.S. Department of Labor.

The percentage increase in the cost of living is calculated based on the change in the CPI-W from the first day of the term year immediately prior to the current term year to the first day of the current term year. This adjustment clause provides Coffee News with the flexibility to respond to economic conditions, while also setting a limit on how much the fees can increase in a given year, based on a recognized measure of inflation.

For a prospective Coffee News franchisee, this means that the weekly fees they pay could fluctuate over time, potentially decreasing in some years but also increasing in others. The CPI-W is a widely used measure of inflation, so franchisees can independently verify the basis for any fee adjustments. It is important for potential franchisees to understand this adjustment mechanism and factor it into their financial projections, as it will impact their ongoing operating costs.