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Coffee News USA Franchise Cost & Fees

Date of Incorporation: 1994
Franchising Since: 1996
U.S. Headquarters: Portland, Maine
Country of origin: Canada

Business Description: Coffee News USA Inc. is the franchisor. Coffee News is a weekly publication delivered to restaurants, coffee shops and other food related businesses. These businesses distribute Coffee News as a service to their clientele and do not pay or receive any fee for the service. Revenue is generated through sales of advertising space on weekly editions of the Periodical.

Franchise Offer: Coffee News USA Inc. offers the right to publish Coffee News and to distribute the periodical to restaurants and other food related businesses within a specific geographical area.

Financial Assistance: After one year under the franchisee’s agreement, Coffee News Inc. may finance new and/or additional purchases of franchise territories through Coffee News USA, Inc. at competitive rates and terms pursuant to a Promissory Note. If franchisees want to buy more than one franchise, the franchisor may finance for up to three more franchises initially as long as the franchisee has good credit and net worth of at least $100,000. The franchisor does not guarantee a franchisee’s note, lease, or obligation associated with any financing plan.

Training and Assistance: The training lasts for three days. The classroom style program utilizes both veteran publishers and corporate staff to provide a combination of lectures and hands on involvement. There is time allowed for networking between franchisees and veteran publishers during this period. There are no other additional training programs the franchisor offers.

Territory: The franchisee receives an exclusive area and the right to distribute the publication of Coffee News based upon the latest Census data. Generally, each area franchise territory should have a population of 25,000 – 50,000 people. Coffee News Inc. will not establish or allow another franchisee to establish distribution locations within the franchisees territory but all franchisees are allowed to solicit and accept advertisements from within and outside their respective territories.

Term of Agreement and Renewal: The term of the franchise is 4 years. The franchisee can renew for an additional 4 years if provisions are met.

Obligations and Restrictions: The franchisee or a designated person must use his or her best efforts in the sale of advertisements and in distributing the editions of Coffee News. The franchisee is personally not required to perform the duties necessary to accomplish these goals, but it is recommended. The only thing that the franchisee will sell is advertising space in the Periodical and the franchisor does not restrict the advertisements that may be accepted for publication. The franchisor does restrict franchisees from reselling any of the Coffee News products or promotional items purchased, either from the franchisor or other vendors, to other publishers or the public.

Estimated Number of Units: 840

Investment Tables:
Initial Investment
Name of Fee Amount
Initial Franchise Fee $8,500
Postponement of Opening Date (if necessary) $1,000
Travel and Living Expenses during Training $500
Real Estate and Improvements N/A
Equipment N/A
Stands $500
Security Deposits, Utility Deposits, Business Licenses N/A
Miscellaneous Opening Costs $250
Opening Inventory N/A
Advertising N/A
Additional Funds N/A
Estimated Total $9,750 - $10,750
Other Fees
Type of Fee Amount
Weekly - Initial Franchise $80
Weekly -Additional Franchises (agreed to upon signing the initial franchise agreement) $25 / additional franchise.
Initial - Additional Franchises (agreed to after signing the initial franchise agreement) $6,000 / additional franchises.

The above information has been taken from the FDD of Coffee News USA. Year of FDD: 2015

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