When do weekly payments begin for additional Coffee News franchises?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
e needs to pay for additional $1,000.00 to us to obtain such extension and hold Franchisee's area for such one or more months before Franchisee pays the full amount due under the Agreement.
- 2.1.4 Weekly Fees. For the first Franchise granted to Franchisee, weekly payments of:
- 2.1.4.1 for hardcopy Periodical, $80 per week beginning upon the conclusion of the Initial Period. In the case of multiple franchises granted to Franchisee under separate licensing agreements, weekly pa
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, if a franchisee is granted multiple franchises under separate licensing agreements, the weekly payments for each additional franchise are $25. These payments start each week after the first nine months of the franchisee's operation, as outlined in Schedule A of the agreement. This means that for the initial nine months, the franchisee is not required to pay weekly fees for the additional franchises.
This delayed payment schedule for additional franchises can be a significant benefit for franchisees looking to expand their Coffee News business. It allows them to focus on establishing their initial franchise and generating revenue before incurring additional weekly costs. The $25 weekly fee for additional franchises is also substantially lower than the $80 per week for the first hardcopy periodical franchise, making it more affordable to operate multiple locations.
However, franchisees should be aware that failure to make these weekly payments, or the deposit for additional franchises, according to Schedule A, for a period of sixty days from the due date may result in the loss of all franchises and termination of the Periodical, at the option of Coffee News. Therefore, it is crucial to manage cash flow effectively and ensure timely payments to maintain good standing with the franchisor and avoid potential penalties.
Prospective franchisees should carefully review Schedule A of the Franchise Agreement to fully understand the payment terms and conditions for additional franchises. They should also consider the financial implications of operating multiple franchises and ensure they have sufficient capital to cover all associated costs, including the initial franchise fee, weekly payments, and other operating expenses.