Where is the franchise fee for the first unit counted in the Ella Cafe Multi-Unit Development Agreement?

According to Ella Cafe's 2024 Franchise Disclosure Document, if you sign a Multi-Unit Development Agreement (MUDA) for five franchises, the franchise fee for your first unit is included in the "Estimated Initial Investment – Franchise Agreement" table. This means that when assessing the initial investment for a single Ella Cafe franchise, the cost of the initial franchise fee for the first unit under the MUDA is already accounted for. You are required to pay all franchise fees upon signing the MUDA.

This is important for prospective multi-unit franchisees because it clarifies where to find the cost of the initial franchise fee within the FDD. Instead of being listed separately under the MUDA, it's incorporated into the single-unit franchise investment figures. This could affect how franchisees plan their initial financing and budget allocation, as they need to be aware that the initial franchise fee is due upon signing the MUDA.

It is also important to note that the development fee referenced in Item 5 is based on a commitment to develop 4 additional franchises. Ella Cafe does not offer any financing of the initial investment. All payments are payable to Ella Cafe and are nonrefundable unless otherwise stated.