What is the amount of the Transfer Fee for an Ella Cafe franchise?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
elopment Agreement**
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer For Convenience | No fee to transfer for convenience of ownership or non controlling interest, except reimbursement of our attorneys' fees | When transfer is requested | Transfer for convenience of ownership is when an individual franchisee assigns his or her rights to a corporation, limited liability company, or other entity controlled by the same individual. |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, a franchisee must pay a Transfer Fee of $10,000 plus any broker fees and other out-of-pocket costs that Ella Cafe incurs. This fee is due when the transfer occurs, specifically when the franchisee sells their business.
It is important to note that this transfer fee applies when a franchisee sells their Ella Cafe business to a new owner. This fee is intended to cover Ella Cafe's administrative and legal costs associated with reviewing and approving the transfer to ensure the new owner meets their standards and is capable of operating the franchise successfully. The additional costs for broker fees and out-of-pocket expenses could include legal fees, travel expenses for meetings, and other related costs incurred by Ella Cafe during the transfer process.
However, the FDD also states that there is no fee to transfer for convenience of ownership or non-controlling interest, except for reimbursement of Ella Cafe's attorneys' fees. Transfer for convenience of ownership is when an individual franchisee assigns his or her rights to a corporation, limited liability company, or other entity controlled by the same individual. This type of transfer typically occurs for legal or tax reasons and does not involve a change in the actual control or operation of the Ella Cafe franchise.