To whom must an Ella Cafe franchisee promptly pay all amounts due?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
iod; (r) Franchisee fails to maintain required hours of operation as required by the Franchisor on two or
more occasions without prior written permission, within any rolling 12-month period; or (s) Franchisor delivers to Franchisee within any period of 12 consecutive months, failure to comply with this Agreement on 3 or more separate occasions for which notices of default were given (or failure on 2 or more separate noticed occasions to comply with the same obligation), whether or not those failures to comply are corrected.
- 14.3. Termination With 10-Day Cure Period. Franchisor has the right to terminate this Agreement, which termination will become effective upon delivery of written notice of termination, if Franchisee fails to cure the following defaults within 10 days after delivery of written notice: (a) failure to obtain or maintain required insurance coverage; (b) failure to pay any amounts due Franchisor; (c) failure to pay any amounts due to the landlord of the Coffee House premises, suppliers, or other trade creditors (unless such amount is subject to a bona fide dispute); (d) failure to pay any amounts for which Franchisor has advanced funds for or on Franchisee's behalf, or upon which Franchisor is acting as guarantor of Franchise's obligations; (e) violation of any provision of this Agreement concerning the use and protection of the Marks or Copyrighted Works; or (f) violation of any provision of this Agreement concerning the preparation, service, appearance, or quality of ELLA or ELLA COFFEE HOUSE products.
- 14.4. Termination With 30-Day Cure Period.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, a franchisee must promptly pay several entities. Specifically, the franchisee must pay any amounts due to Ella Cafe itself. Additionally, the franchisee is obligated to pay amounts owed to the landlord of the coffee house premises, suppliers, or other trade creditors, unless there is a legitimate dispute regarding the amount owed.
Furthermore, the franchisee is responsible for paying any amounts for which Ella Cafe has advanced funds or acted as a guarantor on the franchisee's behalf. This means that if Ella Cafe covers expenses or secures obligations for the franchisee, the franchisee must promptly reimburse Ella Cafe.
Finally, upon termination or expiration of the franchise agreement, the franchisee is obligated to pay all outstanding amounts owed to Ella Cafe based on the business's operation up to the termination date. Failing to meet these payment obligations can result in the termination of the franchise agreement if the defaults are not cured within a specified timeframe.