When are the Costs of Collection fees due for an Ella Cafe franchise?

According to Ella Cafe's 2024 Franchise Disclosure Document, the Costs of Collection fees are due 'As incurred.' The amount of this fee is Ella Cafe's actual costs. This means that a franchisee will be responsible for covering the expenses Ella Cafe incurs while trying to collect outstanding payments or resolve financial disputes.

For a prospective Ella Cafe franchisee, this implies that if you fail to make timely payments or otherwise breach your financial obligations to Ella Cafe, you will not only owe the original debt but also any additional costs Ella Cafe incurs in the process of attempting to recover those funds. These costs could include attorney fees, court costs, or the expenses of collection agencies.

It is important for franchisees to maintain good financial standing and adhere to the payment terms outlined in the franchise agreement to avoid incurring these potentially significant additional costs. Understanding the 'Due Date' as 'As incurred' means these fees can arise at any point during the franchise term if collection actions are necessary.