How long does an Ella Cafe franchisee have to cure non-compliance before a fee is charged?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
Non-Compliance Fee.** Franchisor may charge Franchisee $500 for any instance of noncompliance with the System Standards or this Agreement (other than Franchisee's non-payment of a fee owed to Franchisor) which Franchisee fails to cure after 30 days' notice. Thereafter, Franchisor may charge Franchisee $250 per week until Franchisee ceases such non-compliance. This fee is a reasonable estimate of Franchisor' internal cost of personnel time attributable to
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 non-compliant with the franchise agreement, Ella Cafe may charge a fee of $250 per week until the franchisee ceases the non-compliance.
This fee is intended to cover Ella Cafe's internal costs related to addressing the non-compliance and is not considered a penalty or a comprehensive estimate of all potential damages resulting from the franchisee's breach.
It's important to note that this non-compliance fee is in addition to any other rights and remedies that Ella Cafe may have, including default and termination rights as outlined in Section 14.2 of the franchise agreement. This means that non-compliance could lead to both financial penalties and potential termination of the franchise agreement.