When is the Ella Cafe Brand Marketing Fee due?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.4 Brand Marketing Fee. Franchisor has established and administers a System-wide marketing, advertising and promotionsto facilitate regional and national advertising and marketing efforts to which Franchisee shall contribute a monthly fee.
On or before 5:00 PM EST on Tuesday each week (unless this day is a weekend or holiday, then on the business day before), Franchisee shall contribute to the Brand Marketing Fee an amount specified by Franchisor from time to time, but not to exceed 3% of Gross Sales for the applicable period ("Brand Marketing Fee").
The Brand Marketing Fee shall be due at the same time as the Royalty Fee.
Brand Marketing Fee shall be made at the time and in the manner provided for Royalty Fees in Section 4.
Franchisor shall notify Franchisee at least thirty (30) days before changing Brand Marketing Fee requirements.
The Brand Marketing Fee shall be maintained and administered by Franchisor or its designee as follows:
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the Brand Marketing Fee is due at the same time as the Royalty Fee. Franchisees must contribute to the Brand Marketing Fee weekly, specifically on or before 5:00 PM EST on Tuesday, unless that day falls on a weekend or holiday, in which case the payment is due on the business day before. The amount is determined by Ella Cafe, but will not exceed 3% of Gross Sales for the applicable period.
This means that as an Ella Cafe franchisee, you'll need to calculate and remit both your Royalty Fee and Brand Marketing Fee every week, adhering to the Tuesday deadline. Failing to do so could result in penalties or even termination of the franchise agreement. The Brand Marketing Fee is used for System-wide marketing, advertising, and promotions.
It is important to note that Ella Cafe can change the Brand Marketing Fee requirements, but they must provide at least thirty (30) days' notice before implementing any changes. This allows franchisees some time to adjust their financial planning accordingly. The Brand Marketing Fee is deposited into a fund controlled by ELLA Coffee Franchise.