What constitutes 'Incapacity' that would prevent someone from fulfilling obligations under the Ella Cafe Franchise Agreement?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
"Incapacity" means physical, emotional, or mental injury or illness which would prevent a person from performing the obligations set forth in this Agreement or in any guaranty made part of this Agreement for at least 90 consecutive days and from which the person suffering the incapacity is not likely to recover within 90 days from the date of determination of the incapacity, as determined by a licensed practicing physician upon examination of the person, or if the person refuses to submit to an examination, then such person automatically shall be deemed to be incapacitated as of the date of such refusal.
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, 'Incapacity' is specifically defined in relation to the franchisee's ability to perform their obligations. It means a physical, emotional, or mental injury or illness that prevents a person from fulfilling the obligations outlined in the Franchise Agreement or any related guaranty.
For Ella Cafe, this incapacity must last for at least 90 consecutive days. Furthermore, a licensed physician must determine that the person suffering from the incapacity is not likely to recover within 90 days from the date of the examination. This determination requires an examination by a licensed practicing physician.
However, if the person refuses to submit to a medical examination, they will automatically be deemed incapacitated as of the date of such refusal. This clause protects Ella Cafe by ensuring a clear determination of incapacity, either through medical evidence or by the franchisee's actions.