What is the initial non-compliance fee that Ella Cafe may charge a franchisee?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
chisor any fees or amounts described in this Agreement are not dependent on Franchisor' performance and are independent covenants by Franchisee. Franchisee shall make all such payments without offset or deduction.
4.13 Default Fee. If you are in default under this Agreement, at our discretion, and with
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, if a franchisee is in default of their agreement, Ella Cafe has the discretion to impose a "Default Fee". This fee can be up to $1,500 per event of default.
In addition to the default fee, Ella Cafe may also charge the franchisee for the costs of re-inspections and the costs of enforcing compliance with the franchise agreement. The franchisee is required to pay this Default Fee within 3 days of demand from Ella Cafe.
This clause in the franchise agreement allows Ella Cafe to recoup some of the costs associated with a franchisee's non-compliance and incentivizes franchisees to adhere to the terms of the agreement. Prospective franchisees should be aware of the conditions that could trigger a default and the associated fees.