Coffee News Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$11,150 - $12,250
Franchise Fee
$7,000
Total US Locations
168
Business Summary
Coffee News publishes a free weekly restaurant publication distributed to restaurants, coffee shops, and other food-related businesses. Coffee News franchisees generate revenue by selling advertising space within these weekly editions. The publication is available in both hard copy and an online version.
Corporate History
Coffee News USA, Inc. was incorporated in Maine on January 27, 1994. The company initially operated its own franchises in Maine. Over the years, Coffee News USA bought and sold some of its company-owned locations, and at times reacquired them. Since February 5, 1996, Coffee News USA has been offering franchises as a subfranchisor across the USA, Central America, and the Caribbean. In 2021 and 2022, Coffee News USA expanded its services to include an online version of the publication. The company was originally named Ergonomic Consulting Services, Inc. and changed its name to Coffee News USA, Inc. in 2004.
Financial Overview
Investment Range
$11,150 - $12,250
Franchise Fee (Low)
$7,000
Franchise Fee (High)
$9,900
Minimum Net Worth
$100,000
Equipment Costs (Low)
$500
Equipment Costs (High)
$500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The auditor of Coffee News USA, Inc. issued an unqualified opinion, indicating no concerns about the company's ability to continue operating. However, Coffee News USA experienced a net loss from operations in 2024 and 2023, and negative cash flow from operating activities for the last three years (2022-2024). The company's management believes it is not exposed to significant risk with its operating cash balances.
Financing Details
Coffee News USA offers financing for additional franchise territory purchases after one year under the agreement. For those with good credit and a net worth of at least $100,000, Coffee News USA may finance up to three additional franchises. The interest rate is 5% APR, with terms ranging from two to five years, secured by the licensed rights to the territories. For candidates with excellent credit and verifiable sales experience, full funding may be available for purchasing a minimum of four or more franchises, subject to an initial training fee payment. This financing also has a 5% simple interest rate with weekly payments for up to 48 months. Coffee News USA also accepts major credit cards for payments and has no prepayment penalty.
Performance Metrics
Total US Locations
168
Franchised Units
168
Corporate Units
3
Franchising Since
1996
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Coffee News has no litigation history to report.
Bankruptcy History
Coffee News has no bankruptcy history to report.
Agreement Terms
Initial Term
4 years
Renewal Term
4 years
Renewal Conditions
To renew their franchise agreement, Coffee News franchisees must have performed all their obligations to the franchisor's satisfaction and not be in breach of the agreement. They must also provide written notice to Coffee News USA at least six months before the current term ends and be prepared to sign a new franchise agreement that may contain materially different terms and conditions from their original agreement.
Training & Support Program
Franchisor Assistance
Before publishing the first edition, Coffee News USA provides franchisees with an operations manual detailing how to arrange distribution, sell advertising, design ads, determine pricing, and define coverage areas. Coffee News USA also helps define the exclusive distribution territory and shares unique marketing and sales techniques. After the first edition, Coffee News USA offers ongoing support services that may include telephone conferencing, a newsletter, business and marketing ideas, samples for forms and display racks, and other networking concepts as they become available. Additionally, Coffee News USA provides a two to three-day 'Coffee News College' training program for new North American franchisees.
Initial Training Hours
16
Training Location
Bangor, ME
Ongoing Support
After franchisees publish their first edition of Coffee News, Coffee News USA provides ongoing support services as deemed reasonable and advisable. This can include telephone conferencing, a newsletter, business and marketing ideas, samples for forms and display racks, and other networking concepts as they become available.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Hands-On
Territory Type
Exclusive
Territory Size Requirements
Coffee News USA defines its exclusive franchise territories based on 2010 census data for resident population. Generally, each Coffee News franchise territory should have a population of 25,000 to 50,000 people. Coffee News USA is flexible on the number of franchise territories available in any geographic area.