factual

When must the Ella Cafe franchisee notify the Franchisor in writing when construction begins?

Ella_Cafe Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (ii) During construction, Franchisee must maintain general liability and property damage insurance of the type and with the limits Franchisor requires, protecting Franchisee and Franchisor and its Affiliates and their respective partners, shareholders, directors, agents, and employees.

Such policy or policies must be written by a responsible insurer or insurers acceptable to Franchisor and must contain a waiver of subrogation in favor of Franchisor and its Affiliates, and their respective partners, shareholders, directors, agents, and employees.

Franchisee must notify Franchisor in writing when construction begins and thereafter must provide progress reports when, and in the form, required by Franchisor.

  • (iii) During construction, Franchisee must provide Franchisor with such periodic progress reports as Franchisor may reasonably request, including, but not limited to, digital photographs and/or video of the Coffee House premises and the surrounding area.

In addition, Franchisor may make such on-site inspections as it may deem reasonably necessary to evaluate such progress, which visits may be through remote/virtual means.

Franchisee will notify Franchisor of the scheduled date for completion of construction no later than 21 days prior to such date.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2024 FDD)

According to Ella Cafe's 2024 Franchise Disclosure Document, the franchisee must notify Ella Cafe in writing when construction begins. After construction begins, the franchisee must provide progress reports when and in the form required by Ella Cafe. The franchisee must also notify Ella Cafe of the scheduled date for completion of construction no later than 21 days prior to such date.

This means that as an Ella Cafe franchisee, you'll need to maintain open communication with the franchisor throughout the construction phase of your coffee house. Providing written notification at the start of construction is a mandatory step, ensuring Ella Cafe is aware of the project's commencement.

Furthermore, you're obligated to submit progress reports according to Ella Cafe's specifications, which could involve specific formats or timelines. This allows Ella Cafe to monitor the construction and ensure it aligns with their standards. Finally, providing a heads-up of at least 21 days before the anticipated completion date is crucial for coordinating the final stages and preparations for opening your Ella Cafe location.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.