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.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Coffee News unit return on the cash you put in?
Unlevered ROIC · per unit
121%
Above typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
95 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Coffee News · FDD (2024) PDF