For Ella Cafe, what financial criteria must Developers and their Owners satisfy to be granted a franchise?

According to Ella Cafe's 2024 Franchise Disclosure Document, developers and their owners must meet the franchisor's financial criteria to be granted a franchise. Specifically, before exercising any development right, the developer (or its affiliate, if approved) must apply for a franchise to operate a Coffee House. Ella Cafe will grant the franchise if it determines that the developer has met certain conditions, including financial ones.

To meet the financial conditions, the developer, its affiliates, and their respective owners must satisfy Ella Cafe's then-current financial criteria for franchisees and owners. Additionally, the developer, or its affiliates, and their respective owners must have been and are faithfully performing all terms and conditions under each of the existing Franchise Agreements with Ella Cafe.

Furthermore, neither the developer nor any of its affiliates can be in default, nor have been in default during the 12 months preceding the request for financial approval, regarding any monetary obligations owed to Ella Cafe or its affiliates, or any monetary obligations owed to the developer's or its affiliates' landlords or other vendors relating to any Coffee House they operate. This indicates that Ella Cafe places a strong emphasis on the financial stability and responsibility of its developers and their owners, ensuring they are capable of meeting their financial obligations and maintaining a positive financial standing within the franchise system.