Coffee News USA

Date of Incorporation: 1994

Franchising Since: 1996

U.S. Headquarters: Portland, Maine

Country: Canada

Business Description: 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 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. Every eight weeks Coffee News Inc. distributes weekly copies of Coffee News to the franchisees. The weekly copy that is provided contains all material to be published except for advertising copy and local events.

Financial Assistance: 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. Additionally, Coffee News Inc. offers indirect financing for all or a portion of franchise purchases through Wise Man Finance LLC.

Training and Assistance: The training is completely voluntary and lasts for two-and-half days. The training will cover but is not limited to the topics of sales, ad design, billing, collections, distribution, marketing and start-up.

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.

Renewal and Termination: The term of the franchise is four years. The franchisee can renew for an additional four years if certain 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 franchisee must purchase weekly copy, also known as content, from Coffee News Inc. The weekly copy shall be used for the Periodical which contains the format and information to be included in all sections except the "What's Happening" section, which the franchisee shall provide.

Total Number of Units: 1,118 units

Investment Tables:

Initial Investment:

Name of Fee Amount
Initial Franchise Fee $8,000
Travel and Living Expenses during Training $500
Real Estate and Improvements N/A
Equipment N/A
Stands $275
Security Deposits, Utility Deposits, Business Licenses N/A
Miscellaneous Opening Costs $150
Opening Inventory N/A
Advertising N/A
Additional Funds N/A
Total $8,925

Ongoing Fees:

Name 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)
$5,500/
additional franchises

Date of FDD: 2010

The above information has been has been compiled from the FDD of Coffee News USA along with online sources.

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