Does Ella Cafe generally own the premises of the franchised location?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
A. Your site. We will review and approve or disapprove your potential locations that you submit to us. (Section 6.1). If you sign a Multi-Unit Development Agreement, we will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. We are not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.
- (i) We generally do not own your premises.
- (ii) If your site is not already known and approved by us when you sign your franchise agreement, then we and you will specify in your franchise agreement Site Selection Area within which you must identify a site. We do not select your site. Your site is subject to our approval. To obtain our approval, you must provide all information and documents about the site that we require. We will not unreasonably withhold our approval; however, if we cannot agree on a location for the Franchised Business, we may in our sole discretion allow more time for site selection or terminate the Franchise Agreement. If your Franchise Agreement is terminated you are not entitled to any refund of your initial franchise fee or other amounts paid to us.
- (iii) The factors we consider in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms. If you fail to comply with your obligation to identify a site that is acceptable to us, develop, and open the franchise by the Opening Date, defined below, and unless we agree to extend the deadline in writing, you will be in default and we may terminate your franchise agreement.
- (iv) The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. (Section 6.1). If we and you cannot agree on a site, you will be unable to comply with your obligation to develop and open the franchise by the deadline stated in the franchise agreement. Unless we agree to extend the deadline, you will be in default and we may terminate your franchise agreement.
- (v) We are not obligated to assist you in conforming the premises of your site to local ordinances and building codes and obtaining any required permits. This will be your responsibility. If the Coffee House, occupies a space under a commercial
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the company generally does not own the premises of the franchised locations. The FDD states that Ella Cafe is not obligated to assist franchisees in locating a site or negotiating the purchase or lease of the site.
If a site is not already known and approved when the franchise agreement is signed, Ella Cafe and the franchisee will specify a Site Selection Area within which the franchisee must identify a site. The final site selection is subject to Ella Cafe's approval, and the franchisee must provide all required information and documents about the site to obtain this approval.
Ella Cafe considers factors such as general location, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms when approving sites. The franchisee is responsible for conforming the premises to local ordinances and building codes and obtaining any required permits. If the franchisee fails to identify a site acceptable to Ella Cafe and open the franchise by the specified Opening Date, Ella Cafe may terminate the Franchise Agreement, and the franchisee will not be entitled to a refund of the initial franchise fee or other amounts paid.