If a judgment remains unsatisfied for how many days can Ella Cafe terminate the agreement?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
Developer will be deemed to be in default of this Agreement, and all rights granted to it in this Agreement will automatically terminate without notice if: (a) Developer becomes insolvent or makes a general assignment for the benefit of creditors; (b) a petition in bankruptcy is filed by Developer or such a petition is filed against Developer and Developer does not oppose it; (c) Developer is adjudicated as bankrupt or insolvent; (d) a bill in equity or other proceeding for the appointment of a receiver for Developer or other custodian for its business or assets is filed and consented to by Developer; (e) a receiver or other custodian (permanent or temporary) of Developer's assets or property, or any part thereof, is appointed by any court of competent jurisdiction; (f) proceedings for a composition with creditors under any state or federal law is instituted by or against Developer; (g) a final judgment remains unsatisfied or of record for 30 days or longer (unless a supersedeas bond is filed); (h) Developer is dissolved; (i) execution is levied against Developer's business or property; (j) judicial, non-judicial, or administrative proceedings to foreclose any lien or mortgage against Developer, the Business Entity, or the Coffee House premises or as
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the franchise agreement can be terminated without notice if a final judgment remains unsatisfied or of record for 30 days or longer, unless a supersedeas bond is filed.
This means that if a court issues a final judgment against an Ella Cafe franchisee, and the franchisee does not pay the judgment or file a bond to stay enforcement of the judgment within 30 days, Ella Cafe has the right to immediately terminate the franchise agreement. This is a significant risk for franchisees, as it means that even a single adverse judgment could result in the loss of their franchise if not handled promptly.
Franchisees should be aware of this provision and take steps to protect themselves from potential judgments, such as maintaining adequate insurance coverage and carefully managing their business operations to avoid lawsuits. It is also important to seek legal counsel immediately if a judgment is entered against them to explore options for satisfying the judgment or appealing the decision.