factual

What is the initial action required of a Developer or their representative upon the death or permanent disability of the Developer of an Ella Cafe?

Ella_Cafe Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 8.8. Transfer Upon Death or Permanent Disability.

Developer or its representative must promptly notify Franchisor of any death or claim of permanent disability subject to this Section 8.8.

Any transfer upon death or permanent disability will be subject to the following conditions, as well as to the conditions described in Section 8.3. for any inter vivos transfer.

  • 8.8.1.

Upon the death of Developer (if Developer is a natural person) or any Owner who is a natural person ("Deceased"), the executor, administrator, or other personal representative of the Deceased must transfer such interest to a third party approved by Franchisor within six months after the date of death.

If no personal representative is designated or appointed or no probate proceedings are instituted with respect to the estate of the Deceased, then the distributee of such interest must be approved by Franchisor.

If the distributee is not approved by Franchisor, then the distributee must transfer such interest to a third party approved by Franchisor within six months after the death of the Deceased.

  • 8.8.2.

Upon the permanent disability of Developer (if Developer is a natural person) or any Principal who is a natural person, Franchisor may, in its sole discretion, require such interest to be transferred to a third party in accordance with the conditions described in this Section 8. within six months after notice to Developer. "Permanent disability" means any physical, emotional, or mental injury, illness, or incapacity which would prevent a person from performing the obligations set forth in this Agreement or in any guaranty made part of this Agreement for at least 90 consecutive days and from which condition recovery within 90 days from the date of determination of disability is unlikely.

Source: Item 23 — RECEIPTS (FDD pages 50–181)

What This Means (2024 FDD)

According to Ella Cafe's 2024 Franchise Disclosure Document, in the event of the death or permanent disability of a Developer, the Developer or their representative must promptly notify Ella Cafe of the death or claim of permanent disability.

For a prospective Ella Cafe developer, this means that immediate notification to the franchisor is crucial to begin the transfer process outlined in the franchise agreement. This ensures compliance with the agreement and facilitates a smooth transition of the business.

Following the initial notification, the executor, administrator, or personal representative of the deceased must transfer the interest to a third party approved by Ella Cafe within six months of the date of death. If no personal representative is designated, the distributee must be approved by Ella Cafe, and if not approved, they must transfer the interest to an approved third party within the same six-month timeframe. In the case of permanent disability, Ella Cafe has the discretion to require the interest to be transferred to a third party within six months after notice to the Developer.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.