What conditions may Ella Cafe place on relocation approval?
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 at the 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.
Selection of the relocation site and Coffee House construction, renovation, and opening procedures and timelines will be governed by this Article 6.
Source: Item 22 — CONTRACTS (FDD page 50)
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 prior written consent. If a franchisee is unable to continue operations at their current location due to unforeseen circumstances, such as a force majeure event or other reasons not constituting a default, they may request permission to relocate within their designated area.
Ella Cafe's approval for relocation will not be unreasonably withheld; however, it may be conditional. Specifically, Ella Cafe may require the franchisee to pay an agreed minimum fee during the period the coffee house is not in operation.
Furthermore, the selection of the new relocation site, along with all construction, renovation, opening procedures, and timelines, will be governed by the standards outlined in Article 6 of the franchise agreement. This ensures that the relocated Ella Cafe maintains the brand's standards and operational consistency.