About Coffee News Franchise
Coffee News is a media franchise centered on publishing a free weekly print and online publication distributed to restaurants, coffee shops, and other food related businesses.
Owners manage their publication within an exclusive geographic territory, generating revenue primarily through the sale of advertising space to local businesses.
The franchise fee is $9,900, and the brand has been franchising since 1996.
Coffee News Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $9,900.00 | One-time payment upon signing |
| Royalty Fee | $80 per week for initial franchise, $25 per week for additional franchises of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | No required advertising fund contributions | National brand fund |
| Total Investment Range | $11,150 – $12,250 | Includes build-out, inventory, working capital |
The investment range of $11K–$12K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty ($80 per week for initial franchise, $25 per week for additional franchises) and marketing fee (No required advertising fund contributions) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| INITIAL FRANCHISE FEE | $9,900 | $9,900 |
| COFFEE NEWS ONLINE ENROLLMENT FEES | $0 | $100 |
| POSTPONEMENT OF OPENING DATE | $1,000 | $1,000 |
| TRAVEL AND LIVING EXPENSES IN TRAINING | $500 | $500 |
| REAL ESTATE AND IMPROVEMENTS | $0 | $0 |
| EQUIPMENT | $0 | $0 |
| STANDS | $500 | $500 |
| SECURITY DEPOSITS, UTILITY DEPOSITS, BUSINESS LICENSES | $0 | $0 |
| MISCELLANEOUS OPENING COSTS | $250 | $250 |
| OPENING INVENTORY | $0 | $0 |
| ADVERTISING | $0 | $0 |
| ADDITIONAL FUNDS -[initial period] | $0 | $0 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $2,900.00 |
| Renewal Fee | No renewal fees |
| Technology Fee | Coffee News Online Basic Service: $25.00 per week; Coffee News Online Premium Service: $50.00 per week |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 days |
| Classroom Training | 18 hours |
| On-the-Job Training | 8-week mentor program |
| Training Location | Bangor, Maine, and other random locations around North America |
| Additional Training | Existing publishers may voluntarily attend future initial training programs at their own expense. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | 25,000 - 50,000 population |
| Description | Each exclusive franchise territory is based on 2010 census data, generally having a population of 25,000 to 50,000. The franchisor is flexible on the number of territories available in a geographic area and approves proposed territories. While distribution is restricted to the exclusive territory, franchisees may solicit and accept advertisements from sources both inside and outside their territory without restriction. The franchisor will not establish or allow other publishers to distribute within a franchisee's exclusive territory, nor will it compete directly or indirectly within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 4 years |
| Renewal Term | 4 years |
| Renewal Fee | No renewal fees |
| Renewal Conditions | Franchisee must have duly performed obligations to the franchisor's satisfaction, the agreement must be in full force, and the franchisee must not be in breach. Franchisee may be required to sign a new agreement with potentially materially different terms and conditions. |
| Transfer Fee | $2,900.00 |
| Transfer Conditions | Transfers are prohibited without the franchisor's express written consent, which will not be unreasonably withheld. The transferee must execute Coffee News' then-current Franchise Agreement. |
| Termination for Cause | The franchisor can terminate if the franchisee breaches or defaults under any provision of the franchise agreement, including unlicensed distribution, participation in similar publications, insolvency, criminal offenses, asset attachment/seizure, nonpayment of fees for 60 consecutive days, mental incompetency, breach of other contracts, or lack of communication for 10 weeks after three attempts. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise and for two years following its termination or expiration, the franchisee (including individuals, business entities, family members, officers, directors, key personnel, employees, or stockholders) is prohibited from directly or indirectly engaging in, acquiring an interest in, or performing services for any publication similar to Coffee News within their state. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisee or a designated person must use their best efforts in selling advertisements and distributing Coffee News editions. Personal performance of these duties is recommended but not required. Only signatories to the Franchise Agreement must complete the training. The franchisee, as owner, is responsible for ensuring all employees, including managers or on-premises supervisors, comply with the Franchise Agreement terms. |
| Required Suppliers | Franchisees must purchase weekly copy/content from Coffee News USA, Inc. Printing services must be purchased from a local commercial printer in Bangor, Maine (contracted by Coffee News Printing, LLC) for a minimum of one year. Coffee News Online services, if enrolled, must be purchased through Coffee News USA, Inc. from either Shadow Fox Consulting or Chil Consulting. |
| Supply Restrictions | Coffee News USA, Inc. is the sole U.S. distributor of weekly copy and has final authority over content; franchisees may not edit copy without written permission. All other products or services, including stands, may be purchased from third-party suppliers. |
| Franchisor Revenue from Suppliers | In 2021, revenue from all sources was $424,134, with $402,286 (94.8%) representing revenue from required purchases and leases. Coffee News Printing LLC, an affiliate, generated $12,483 (3.2% of its total revenue) from required purchases by Coffee News publishers in 2021. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | After one year, Coffee News USA, Inc. may finance additional franchise territory purchases at competitive rates (5% APR) with terms varying from two to five years, based on the amount borrowed and ability to pay. Financing requires good credit and a net worth of at least $100,000. For those with excellent credit and extensive sales/management experience (at least 2 years), full funding for four or more franchises may be available, subject to an initial training fee, 5% simple interest, and weekly payments for up to 48 months. The franchisor accepts major charge cards and holds licensed rights as security. |
Coffee News Franchise Earnings — Item 19
Coffee News does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Coffee News Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Coffee News System Growth
Coffee News currently operates 487 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 32 | 96 | 544 |
| 2020 | 27 | 57 | 514 |
| 2021 | 31 | 58 | 487 |
Transfers: 139 | Closures: 211
State Registrations
Registered in 13 states: CA, HI, IL, IN, MD, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by EFS CPA for year ending December 31.
Coffee News Franchise — FAQ
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