What information must an Ella Cafe franchisee provide in the franchise site application?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
13.8 Representations of Franchisee.
(a) Franchisee represents and warrants that the ownership information set forth in Attachment 1 is accurate and complete in all material respects, and Franchisee hereby agrees to notify Franchisor in writing prior to any change in the ownership information set forth in Attachment 1, and in compliance with the transfer requirements of Section 12. of this Agreement. If Franchisee is a Business Entity, Franchisee further represents and warrants to Franchisor that: (a) Franchisee is duly organized and validly existing under the laws of the state of its formation; (b) Franchisee's governing documents will, at all times, provide that Franchisee's activities are confined exclusively to the operation of the Coffee House; (c) neither Franchisee nor any of its Affiliates nor Owners own, operate, or have any financial or beneficial interest in any business that is the same as or similar to a System Coffee House; and (d) the execution of this Agreement and the performance of the transactions contemplated by this Agreement are permitted by Franchisee's governing documents and have been duly authorized. If Franchisee is two or more individuals or entities, then the rights and obligations of this Agreement may only be exercised
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, an Ella Cafe franchisee must ensure that the ownership information provided in Attachment 1 of the franchise agreement is accurate and complete. The franchisee is obligated to notify Ella Cafe in writing before any changes occur to this ownership information. This notification must also comply with the transfer requirements outlined in Section 12 of the agreement.
If the Ella Cafe franchisee is a business entity, it must also confirm several conditions. First, the franchisee must be properly organized and legally operating under the laws of the state where it was formed. Second, the franchisee's governing documents must state that its business activities are limited exclusively to operating the Ella Cafe. Third, neither the franchisee, its affiliates, nor its owners can have any ownership, operational, or financial interest in any business that is the same as or similar to an Ella Cafe. Finally, the franchisee must confirm that executing the franchise agreement and completing the transactions it describes are allowed by the franchisee's governing documents and have been properly authorized.
These requirements ensure that Ella Cafe maintains accurate records of its franchisees' ownership and operational status. This helps protect the brand's integrity and ensures that franchisees are committed to operating their businesses according to the franchise agreement. For a prospective franchisee, this means carefully reviewing and accurately completing Attachment 1 and understanding the ongoing obligation to update this information as needed. It also highlights the importance of ensuring that the franchisee's business structure and activities align with the requirements of the Ella Cafe franchise.