If Ella Cafe cures a franchisee's default, what must the franchisee reimburse?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee is unable or unwilling to resolve a customer complaint within fortyeight (48) hours, and it becomes necessary for Franchisor to reimburse a customer in settlement of his or her complaint about work performed at or by your Coffee House, Franchisee agrees to promptly reimburse Franchisor for amounts expended on account of any such complaint.
Franchisee shall make all such payments without offset or deduction.
4.13 Default Fee. If you are in default under this Agreement, at our discretion, and without waiver of any of our rights under this Agreement, we may impose a fee ("Default Fee") in an amount up to $1,500 per event of default, plus the cost of re-inspections and the costs enforcing compliance. You must pay the Default Fee within 3 days of our demand.
If Franchisee requests on-site assistance, or if Franchisor deems on-site assistance necessary, Franchisor may at its sole discretion provide such service, and upon which, the Franchisee must reimburse Franchisor the costs of transportation, lodging, and meals for the individual(s) providing such on-site assistance.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, if a franchisee is unable or unwilling to resolve a customer complaint within 48 hours, and Ella Cafe reimburses the customer to settle the complaint, the franchisee must promptly reimburse Ella Cafe for the amount expended.
Additionally, if the franchisee defaults on the agreement, Ella Cafe has the discretion to impose a "Default Fee" of up to $1,500 per event of default, along with the costs of re-inspections and the costs of enforcing compliance. The franchisee is required to pay this Default Fee within 3 days of demand from Ella Cafe.
Furthermore, if the franchisee requests on-site assistance, or if Ella Cafe deems on-site assistance necessary, the franchisee must reimburse Ella Cafe for the costs of transportation, lodging, and meals for the individual(s) providing such on-site assistance. This reimbursement obligation ensures that Ella Cafe is compensated for expenses incurred while assisting the franchisee in rectifying defaults or providing necessary support.