What are the attendance requirements for the Principal Executive of an Ella Cafe franchise regarding required meetings?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
al Executive will be the individual Franchisee or one of the general partners. If Franchisee is a Business Entity, the Principal Executive will be an individual with at least a 10% equity interest in the Business Entity. The Principal Executive must have full control over day-to-day Coffee House management and operations. Unless a District manager is appointed, as described below: (a) the Principal Executive must attend and successfully complete Franchisor's initial training program and all additional training that Franchisor requires, to Franchisor's satisfaction; and (b) the Principal Executive must devote his or her full-time efforts to Coffee House operations and must not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitment. Franchisor must approve the Principal Executive as meeting its then-current qualifications for such position. If the Principal Executive ceases to serve in, or no longer qualifies for, such position, or transfers his or her equity interest, Franchisee must designate another qualified person to serve as Franchisee's Principal Executive within 30 days after the date the prior Principal Executive ceases to serve or no longer qualifies to serve. Any proposed replacement Principal Executive must successfully complete the initial training program and such other training required by Franchisor and be approved by Franchisor before assuming his or her position as Principal Executive and, in no event, later than 90 days after the previous Principal Executive ceased to serve in such position.
- (b) If the Principal Executive will not devote full-time efforts to the management and operation of the Coffee House governed by this Agreement then, in addition to the Principal Executive, Franchisee must appoint an individual to serve as its District Manager. Franchisee's District Manager must have full control over day-to-day Coffee House management and operations. Franchisee's District Manager need not have an equity interest in the Business Entity, but must have completed Franchisor's initial training program and all additional training that Franchisor requires, to Franchisor's satisfaction. Franchisee's District Manager must devote his or her full-time efforts to Coffee House management and operations and must not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitment.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the Principal Executive of a franchise, who must have at least a 10% equity interest in the business, has specific attendance requirements for training programs. Unless a District Manager is appointed, the Principal Executive must attend and successfully complete Ella Cafe's initial training program and any additional training that Ella Cafe requires. This training must be completed to Ella Cafe's satisfaction. The Principal Executive also generally needs to devote their full-time efforts to the coffee house operations, and not engage in other business activities that demand significant time or responsibility.
If the Principal Executive will not be devoting full-time efforts to the management and operation of the Ella Cafe, then the franchisee must appoint a District Manager. The District Manager must have full control over day-to-day coffee house management and operations and must complete Ella Cafe's initial training program and any additional training that Ella Cafe requires, to Ella Cafe's satisfaction.
The initial training program is provided at no charge for up to 3 individuals including the Principal Executive and will take place at a location and time that Ella Cafe designates. If the franchisee wants additional personnel to participate in the training program, Ella Cafe may provide initial training to such additional personnel at any of their scheduled initial training courses at their then-current fee upon commencement of the training program, which is currently $500.00 per day per trainer (maximum 8 hours per day) plus any reasonable out-of-pocket expense for such trainer. The franchisee is responsible for all costs and expenses of complying with Ella Cafe's training requirements including, without limitation, wages, travel, lodging, and dining costs for all of the franchisee's employees who participate in the training.
Ella Cafe retains the right to modify the initial training program at its sole discretion and at any time. The franchisee is responsible for their own travel, lodging, meal, and other out-of-pocket expenses for their personals for attending the training. Ella Cafe reserves the right to vary the length and content of the initial training program based on the experience and skill level of any individual attending the program.