What are the components of the Ella Cafe Non-Compliance Cure Costs and Fee?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Non-Compliance Cure Costs and Fee | Our out-of-pocket costs and internal cost allocation, plus 10% | When billed | We may cure your non-compliance on your behalf (for example, if you do not have required insurance, we may purchase insurance for you), and you will owe our costs plus a 10% administrative fee. |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the Non-Compliance Cure Costs and Fee consists of two components. These are Ella Cafe's out-of-pocket costs and internal cost allocation, plus an additional 10%. This fee is charged when billed.
This fee is charged when Ella Cafe takes action to correct a franchisee's non-compliance on their behalf. For example, if a franchisee fails to maintain the required insurance coverage, Ella Cafe may purchase the necessary insurance and then charge the franchisee for the costs incurred, plus the 10% administrative fee.
As a prospective Ella Cafe franchisee, it's important to understand what constitutes non-compliance and what steps can be taken to avoid it. Maintaining open communication with the franchisor and promptly addressing any issues can help prevent the incurrence of these fees. It would be prudent to clarify with Ella Cafe the specific types of non-compliance that could trigger this fee and to understand how the out-of-pocket costs and internal cost allocation are determined.