What administrative fee does Ella Cafe charge if it cures a franchisee's default?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
see to pay to Franchisor any fees or amounts described in this Agreement are not dependent on Franchisor' performance and are independent covenants by Franchisee. Franchisee shall make all such payments without offset or deduction.
4.13 Default Fee. If you are in default under this Agreement, at our discretion, and with
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, if a franchisee is in default of their agreement, Ella Cafe has the discretion to impose a "Default Fee". This fee can be up to $1,500 per event of default.
In addition to the default fee, Ella Cafe may also charge the franchisee for the cost of re-inspections and any costs incurred while enforcing compliance with the franchise agreement. The franchisee is required to pay the Default Fee within 3 days of demand from Ella Cafe.
This policy means that franchisees could face significant additional expenses on top of addressing the initial default. It is important for prospective franchisees to understand the conditions that could trigger a default and to maintain open communication with Ella Cafe to address any issues promptly. Paying the default fee and associated costs quickly is crucial to avoid further penalties or legal action from Ella Cafe.