For Ella Cafe, what individual must the Developer designate and retain upon execution of the agreement?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
number of acceptable locations within the Development Area and the economic risk of developing the number of Coffee Houses set forth in the Development Schedule.
4.4. Projected Opening Dates. Developer acknowledges that the Projected Opening Date set forth in the Key Terms for each Coffee House to be developed hereunder is reasonable. Subject to Developer's compliance with the requirements of this Section 4., Developer must execute a Franchise Agreement for each Coffee House at or prior to the applicable execution date set forth in the Development Schedule, which must be a date no later than one year prior to the Projected Opening Date for the applicable Coffee House.
5. DEVELOPER'S OBLIGATIONS
5.1. Principal Executive; District Manager.
- 5.1.1. Upon the execution of this Agreement, Developer must designate, and retain at all times during the Term of this Agreement, an individual to serve as Developer's Principal Executive. If Developer is an individual or general partnership, the Principal Executive will be the individual Developer or one of the general partners. If Developer is a Business Entity, the Principal Executive will be an individual with at least a 10% equity interest in the Business Entity. The Principal Executive must have full control over day-to-day management and operations of Developer's development activities. Unless a District Manager is appointed, as described below: (a) the Principal Executive must attend and successfully complete Franchisor's initial training program and all additional training that Franchisor requires, to Franchisor's satisfaction; and (b) the Principal Executive must devote his or her full-time efforts to development activities and/or Coffee House operations and must not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitment. Franchisor must approve the Principal Executive as meeting its then-current qualifications for such position.
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, upon the execution of the Development Agreement, the Developer must designate and retain an individual to serve as the Developer's Principal Executive. If the Developer is an individual or general partnership, the Principal Executive will be the individual Developer or one of the general partners. If the Developer is a Business Entity, the Principal Executive will be an individual with at least a 10% equity interest in the Business Entity.
The Principal Executive must have full control over the day-to-day management and operations of the Developer's activities. Unless a District Manager is appointed, the Principal Executive must attend and successfully complete Ella Cafe's initial training program and all additional training that Ella Cafe requires. Also, the Principal Executive must devote his or her full-time efforts to development activities and/or Coffee House operations and must not engage in any other business or activity that requires substantial management responsibility or time commitment. Ella Cafe must approve the Principal Executive as meeting its then-current qualifications for such position.
If the Principal Executive will not devote full-time efforts to the management of the business, then, in addition to the Principal Executive, the Developer must appoint an individual to serve as its District Manager. The District Manager must have full control over the Developer's development activities and must have completed Ella Cafe's initial training program and all additional training that Ella Cafe requires. The District Manager must devote his or her full-time efforts to management of the development of Coffee House and must not engage in any other business or activity that requires substantial management responsibility or time commitment.