Does the Ella Cafe Franchise Agreement include an attachment for a 'Guaranty and Non-Compete Agreement'?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
Attachment 3 to Franchise Agreement
GUARANTY AND NON-COMPETE AGREEMENT
This Guaranty and Non-Compete Agreement (this "Guaranty") is executed by the undersigned person(s) (each, a "Guarantor") in favor of Ella Coffee Company, LLC, a Delaware limited liability company ("Ella Coffee Company").
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the Franchise Agreement includes an attachment specifically for a 'Guaranty and Non-Compete Agreement'. This agreement, as stated in the FDD, is executed by the guarantor in favor of Ella Coffee Company, LLC.
The Guaranty and Non-Compete Agreement ensures that the guarantor unconditionally guarantees that the franchisee will fulfill every obligation outlined in the Franchise Agreement. This includes all payments, agreements, and covenants. The guarantor is also responsible for any other liabilities or obligations the franchisee has to Ella Coffee Company, regardless of whether they are included in the Franchise Agreement.
Furthermore, the guarantor agrees to adhere to confidentiality procedures, disclosing confidential information only to employees when necessary for business operations. The guarantor is prohibited from using confidential information in any unauthorized manner and must maintain the confidentiality of this information both during and after the term of the Franchise Agreement. The guarantor also agrees not to compete with Ella Cafe during the term of the agreement and for two years after the agreement expires or is terminated, within a five-mile radius of the franchisee's designated area or any other Ella Coffee House business.