Does Ella Cafe currently have an advertising council established for the franchise system?

According to Ella Cafe's 2024 Franchise Disclosure Document, there is currently no advertising council established for the franchise system. However, Ella Cafe engages in system-wide marketing, advertising, and promotion to assist in regional and national advertising. Franchisees are required to pay a Brand Marketing Fee, which cannot exceed 3% of gross sales; currently, the required contribution is 2% of gross sales.

Ella Cafe controls the creative concepts, materials, and media used in advertisements, determining the placement and allocation of these advertisements, which may include print, television, radio, and internet. While Ella Cafe anticipates that all company-owned cafes will contribute to the Brand Marketing Fee similarly to franchisees, this is not contractually required. The Brand Marketing Fee is not maintained separately as an advertising fund or trust, and contributions are not audited.

At the end of each calendar year, an Ella Cafe franchisee can request an account of how the Brand Marketing Fee monies were spent. Additionally, franchisees are required to spend a minimum of $10,000 on a market introduction plan, as agreed upon with Ella Cafe, over 60 days, spanning 30 days before and after the opening date of their coffee house. Each month, franchisees must also spend at least 2% of their gross sales on local advertising, promotions, and public relations, with Ella Cafe having the right to require up to 3% of gross sales for this purpose. Franchisees must obtain approval from Ella Cafe for any advertising or marketing material they intend to use, and if no response is received within 14 days, the material is deemed rejected.