What is the cure period for an Ella Cafe franchisee's non-payment default?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| g. “Cause” defined-- curable defaults | FA: Section 14.3, 14.4 | Non-payment by you (10 days to cure); violate franchise agreement other than non-curable default (30 days to cure). Non-payment by you (10 days to cure); |
| MUDA: Article 9 | violate franchise agreement other than | |
| non-curable default (30 days to cure). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 41–45)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, if a franchisee fails to make required payments, they have a 10-day period to correct the default. This cure period is specifically for non-payment defaults. If the franchisee rectifies the non-payment within this timeframe, Ella Cafe cannot terminate the franchise agreement on those grounds.
This short cure period highlights the importance of maintaining timely payments to Ella Cafe. Failing to do so can quickly put a franchisee at risk of losing their franchise. Franchisees should ensure they have sufficient financial resources and systems in place to manage payments effectively.
It's important to note that this 10-day cure period applies only to non-payment defaults. Other types of defaults, such as violating the franchise agreement in ways that can be corrected, may have a longer cure period of 30 days. Non-curable defaults, such as misrepresentation or bankruptcy, do not offer a cure period, and Ella Cafe can terminate the agreement immediately upon such an event.