Coffee NewsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Coffee News franchise requires a total initial investment of $11K – $12K, including a $10K franchise fee. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $11K – $12K
- 0th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- N/A
- Units
- 333
- 46th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1996. Systems this mature have refined operations and brand recognition.
Franchised units fell from 489 to 333 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $11K – $12K including a $10K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) with a risk score of 64/100.
- System contracting at -31.9% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- COFFEE NEWS USA, Inc.
- Incorporated in
- ME
- HQ
- 120 Linden Street, Bangor, Maine 04401
- Auditor
- Edwards, Faust & Smith
- Audited financials
- Franchisor revenue
- $468K
- vs $449K prior year
Overview
About
Coffee News franchisees distribute free weekly coffee-themed newspapers/publications to local restaurants, coffee shops, and businesses in their protected territory. Revenue derives from local business advertising sold in the publication. Day-to-day activities include sales calls to secure advertisers, printing coordination, and weekly distribution logistics.
- CEO
- William A. Buckley
- Headquarters
- ME
- Founded
- 1994
- FDD year
- 2024
- States available
- 25
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $10K | $10K |
| Equipment, build-out, other | $1K | $2K |
| Total initial investment | $11K | $12K |
Source: Coffee News 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $11K – $12K
- Better than avg vs category
- Liquid capital req'd
- N/A
- Near category avg vs category
- Franchise fee
- $10K – $11K
- Better than avg vs category
- Royalty
- $80 per week
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $100 |
| Transfer fee | $3K |
| Renewal fee | $0 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Coffee News Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 333
- Opened
- 15
- Last reporting year
- Closed
- 32
- Turnover rate
- 9.6%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- -6.2%
- Net unit change last year
- 3-yr CAGR
- -31.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 16
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 27 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $63K
- Median loan
- $63K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Coffee News's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Shrinking franchise system with undisclosed financials, high relative royalties, and potential franchisor stability concerns create material investment risk despite low absolute costs.
Audited financials (Item 21)
Yes · Edwards, Faust & Smith
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 64 / 100 rating
- 01MINORUnit count declining 6.2% YoY (333 units) indicates system contraction and potential market saturation or franchisee dissatisfaction
- 02MEDNo Item 19 (average revenue/net income) disclosed — impossible to assess actual profitability or validate $11K investment ROI
- 03MINORHigh weekly royalty burden ($80/week = $4,160/year) against unknown revenue creates cash flow risk for marginal performers
- 04MED4-year term is short; limited runway to recoup $9,900 franchise fee plus $11-12K startup costs before renewal risk
- 05HIGHGoing Concern = False suggests franchisor may face operational/financial viability issues that could leave franchisees stranded
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 4 years |
|---|---|
| Renewal term | 4 years |
| Territory type | Census-based population and restaurant count |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | No |
| Termination notice | 120 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maine |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
95 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Coffee News · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Coffee News franchise?
The total investment to open a Coffee News franchise ranges from $11K – $12K, with an initial franchise fee of $10K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Coffee News franchise owners earn?
Coffee News does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Coffee News's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Coffee News (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Coffee News franchise locations are there?
As of their most recent FDD filing, Coffee News has 333 total units in the United States, including 489 franchised units and 3 company-owned units. 15 new units were opened in the latest reporting year.
Is Coffee News a good franchise to buy?
FranchiseVerdict rates Coffee News as a C-grade franchise with a risk score of 64 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.