What is the condition for Ella Cafe Franchisor's approval to relocate the Coffee House?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
| Franchisee will not relocate the Coffee House without Franchisor’s express | |
|---|---|
| prior written consent. If Franchisee is unable to continue the operation of the Coffee House | |
| Location because of the occurrence of an event of Force Majeure (or for other reasons not | |
| constituting an event of default under this Agreement), Franchisee may request Franchisor’s | |
| consent to relocate the Coffee House to another location in the Designated Area. Franchisor’s | |
| approval may not be unreasonably withheld but may be conditioned upon the payment of an agreed | |
| minimum fee to Franchisor during the period in which the Coffee House is not in operation. |
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, a franchisee cannot relocate their Coffee House without the franchisor's express prior written consent. If the franchisee is unable to continue operating at their current location due to an event of Force Majeure or other reasons not constituting a default under the agreement, they can request the franchisor's consent to relocate within their designated area.
The franchisor's approval for relocation will not be unreasonably withheld. However, Ella Cafe may condition its approval upon the franchisee paying an agreed minimum fee to the franchisor during the period the Coffee House is not in operation.
This condition means that if an Ella Cafe franchisee needs to move their location, they must get permission from Ella Cafe. While Ella Cafe cannot arbitrarily deny a reasonable relocation request, they can require the franchisee to pay a fee while the business is temporarily closed during the move. This fee could impact the franchisee's finances during the relocation process.