Coffee News Franchise Cost, Revenue & Review 2026
- Investment
- $11K – $146K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (1)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Coffee News is a franchise publishing a free weekly advertising newsletter distributed to restaurants and local venues. Franchisees, called publishers, run a local edition selling ad space to nearby businesses within an exclusive territory, typically home-based.
FranchiseVerdict summary · 2026
A Coffee News franchise requires a total initial investment of $11K – $146K, including a $10K franchise fee. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored2 of 3 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $11K – $146K
- 0th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- Flat fee
- Units
- 310
- 35th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $11K – $146K including a $10K franchise fee.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 40/100 (higher is better).
- GROWTHNegative: net -26 franchised outlets in the latest year (10 opened, 36 closed) (Item 20).
- FLAG36 units terminated last reporting year (11.6% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- COFFEE NEWS USA, Inc.
- Predecessor
- Ergonomic Consulting Services, Inc. (original 1994 incorporation name, changed to Coffee News USA, Inc. on 5/25/2004)
- Prior franchisor entity
- CEO title
- President and Director
- William A. Buckley
- Incorporated in
- Maine
- HQ
- 120 Linden St., Bangor, Maine 04401
- Auditor
- EFS CPA (15 Columbia Street, Suite 201, Bangor, ME 04401)
- Audited financials
- Franchisor revenue
- $402K
- vs $449K prior year
Overview
About
- CEO
- William A. Buckley
- Headquarters
- Maine
- Founded
- 1994
- FDD year
- 2025
- States available
- 25
Can you afford it, and what does the money buy?
Entry cost runs 88% below the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $10K | $10K |
| Working capital (3–6 mo) | $0 | $0 |
| Equipment, build-out, other | $1K | $136K |
| Total initial investment | $11K | $146K |
Source: Coffee News 2025 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 – $146K
- Top 40% of category vs category
- Liquid capital req'd
- $0 – $0
- Top 40% of category vs category
- Franchise fee
- $10K – $10K
- Top 40% of category vs category
- Royalty
- $80/week per initial franchise (starting month 4), $25/we…
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Weekly fee of $80 per franchise for hardcopy Periodical content, beginning the first day of the fourth month of the agreement; $25/week for each additional franchise (staggered schedule). Not tied to a percentage of gross sales. |
| Technology fee | $100 |
| Transfer fee | $3K |
| Renewal fee | $0 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Coffee News makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Coffee News unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -37.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants medians
How Coffee News Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 310
- Opened
- 10
- Last reporting year
- Closed
- 36
- Terminated
- 36
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 21.4%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- -37.0%
- Net unit change over 3 years
- 3-yr CAGR
- -37.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 36
- Not renewed
- 0
- Transferred
- 15
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 39
- Franchisor's next-year forecast
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.
Where the owners are · Item 20 owner list
61 current owners across 27 states.
- ME 8
- TX 5
- AZ 4
- FL 4
- KY 4
- NJ 4
- MS 3
- NC 3
- WA 3
- CA 2
- GA 2
- IN 2
- +15 more states
Counts only, from the list the franchisor prints in Item 20; 34 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
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
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Shrinking franchise system with undisclosed financials, high relative royalties, and potential franchisor stability concerns create material investment risk despite low absolute costs.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · EFS CPA (15 Columbia Street, Suite 201, Bangor, ME 04401)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
2024 revenues of $401,847 disaggregated as $366,622 satisfied at a point in time (monthly royalty fees, local advertising sales, promotional product sales, seminar fees) and $35,225 satisfied over time (initial franchise sale contracts, four-year terms). Net loss of $(55,199) in 2024; investment income $23,118 reported as other income below operating line.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 verdict
- 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
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 4 years |
|---|---|
| Renewal term | 4 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 37,500 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 90 days |
| Curable defaultsℹ | 0 |
| Mandatory arbitration | Yes |
| Arbitration location | Maine (unless parties mutually agree to alternative location) |
| Jury trial waiver | Yes |
| Governing law | Maine |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 16 hrs
- Training location
- Bangor, Maine
- Ongoing training
- Optional
- Time to open
- 1 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
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
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 – $146K, 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Coffee News?
Coffee News is franchised by COFFEE NEWS USA, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Coffee News FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Coffee News FDD and qualifies whose outlets they describe.
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 310 total units in the United States, including 307 franchised units and 3 company-owned units. 10 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 verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
Are you the franchisor?
If you represent Coffee News, you can request corrections or provide updated information.
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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.