If an Ella Cafe developer seeks to transfer, must they provide the sale terms?

According to Ella Cafe's 2024 Franchise Disclosure Document, a developer seeking to transfer their interest in the Development Agreement must provide a copy of the proposed asset purchase/transfer agreements, including sale terms, to Ella Cafe. This is required at least 120 days prior to the proposed closing date of the transfer.

This requirement allows Ella Cafe to evaluate the proposed transfer, ensuring that the terms of the sale are acceptable and do not negatively impact the brand or the network of franchisees. It also gives Ella Cafe insight into the financial arrangements of the transfer, which may be relevant to assessing the transferee's financial capacity and the overall stability of the franchise system.

In addition to providing the sale terms, the developer must also submit a written request for Ella Cafe's consent to the transfer and pay a non-refundable transfer fee, as outlined in the Key Terms, plus reimbursement of Ella Cafe's reasonable attorney's fees. The transferee must also meet Ella Cafe's standards for education, management, business acumen, moral character, credit rating, and financial requirements.