From which account will Ella Cafe transfer the royalty fee and other amounts due?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
On each Due Date, Franchisor will transfer from Franchisee's commercial bank operating account ("Account") the Royalty Fee, Brand Marketing Fee Contributions, and any other amounts due and owing.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the royalty fee, brand marketing fee contributions, and any other amounts due will be transferred from the franchisee's commercial bank operating account. This account is specifically referred to as the "Account" in the agreement.
Ella Cafe will determine the amount of the Royalty Fee and other amounts due by accessing and retrieving Gross Sales data from the franchisee's computer system, as permitted within the agreement. This means Ella Cafe has the right to access the franchisee's sales data to calculate the fees owed.
All payments required by the agreement must be paid on the day or date Ella Cafe specifies, referred to as the "Due Date". If the Due Date is not a Business Day, then payment will be due on the next Business Day. It is important for prospective franchisees to maintain sufficient funds in their commercial bank operating account to cover these fees on the specified due dates to avoid any potential issues or breaches of the franchise agreement.