What action is required regarding the duplicate receipts attached as Exhibit J in the Ella Cafe FDD?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
ITEM 23 RECEIPTS
The last two pages of this disclosure document, Exhibit J, are detachable duplicate Receipts. Please sign and date both copies of the Receipt. Keep one signed copy of the Receipt for your file and return to us the other signed copy of the Receipt. The Receipt page also contains the names, addresses and telephone numbers of our franchise sellers or brokers.
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, Exhibit J contains detachable duplicate receipts. A prospective Ella Cafe franchisee must sign and date both copies of the receipt. The franchisee should keep one signed copy for their records and return the other signed copy to Ella Cafe. The receipt page also includes the names, addresses, and telephone numbers of Ella Cafe's franchise sellers or brokers.
This process is a standard practice in franchising, ensuring that both the franchisor and franchisee acknowledge the receipt and review of the FDD. The FDD is a critical document that outlines the terms and conditions of the franchise agreement, so confirming its receipt is an important step in the due diligence process.
By signing the receipt, the franchisee acknowledges they have received the FDD, but it does not mean they agree to the terms outlined in the document. The franchisee still has time to review the document and seek legal counsel before signing the franchise agreement. Returning a signed copy of the receipt to Ella Cafe confirms that the franchisee has officially started their review period.