Coffee News USA
Date of Incorporation: 1994
Franchising Since: 1996
Headquarters in the U.S.: Maine
Country: Canada
Business and Description: Coffee News Inc. was incorporated in Maine on January 27, 1994. 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 8 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. does not offer direct or indirect financing and does not guarantee any note, lease or obligation.
Training: The training is completely voluntary and lasts for 2 and half days. The training will cover but is not limited to 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. Generally, each area franchise territory should have a population of 25,000 – 50,000 people and between 24 – 40 active restaurants. 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 4 years. The franchisee can renew for an additional 4 years if certain provisions are met. To terminate the contract the franchisee must give 120 days notice. Coffee News Inc. will not terminate the agreement without cause.
Obligations and Restrictions: The periodical is designed specifically for use in foodservice establishments. Only one advertisement is allowed from each industry per edition. Restaurants are not allowed to advertise and all advertisements must be the same size and arranged to ensure maximum readership. Coffee News Inc. will also supply the franchisee with an operations manual which describes how to distribute, how to sell and design advertisements and how to determine the pricing of advertising.
Total Number of Units: For year ended 2007, the total number of units was: 744
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 | $75 |
| Weekly -Additional Franchises (agreed to upon signing the initial franchise agreement) | $20/ additional franchise |
| Initial - Additional Franchises (agreed to after signing the initial franchise agreement) |
$5,000/ additional franchises |
Date of FDD: 2008
The above information has been taken from the UFOC/FDD of Coffee News USA.
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