How long does an Ella Cafe franchisee have to satisfy a final judgment before it constitutes a default?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
- **14.3.
Termination With 10-Day Cure Period**.
Franchisor has the right to terminate this Agreement, which termination will become effective upon delivery of written notice of termination, if Franchisee fails to cure the following defaults within 10 days after delivery of written notice: (a) failure to obtain or maintain required insurance coverage; (b) failure to pay any amounts due Franchisor; (c) failure to pay any amounts due to the landlord of the Coffee House premises, suppliers, or other trade creditors (unless such amount is subject to a bona fide dispute); (d) failure to pay any amounts for which Franchisor has advanced funds for or on Franchisee's behalf, or upon which Franchisor is acting as guarantor of Franchise's obligations; (e) violation of any provision of this Agreement concerning the use and protection of the Marks or Copyrighted Works; or (f) violation of any provision of this Agreement concerning the preparation, service, appearance, or quality of ELLA or ELLA COFFEE HOUSE products.
- **14.4.
Termination With 30-Day Cure Period**.
Except as otherwise provided in this Section 13., Franchisor has the right to terminate this Agreement, which termination will become effective upon delivery of written notice of termination, if Franchisee fails to cure any curable default within 30 days after delivery of written notice.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document for Ella Cafe does not specify a particular timeframe for satisfying a final judgment. However, the document does outline cure periods for various defaults.
Specifically, Ella Cafe can terminate the franchise agreement if a franchisee fails to cure certain defaults within 10 days after receiving written notice. These defaults include failure to maintain required insurance, failure to pay amounts due to Ella Cafe, landlords, suppliers, or other trade creditors (unless subject to a bona fide dispute), failure to pay amounts for which Ella Cafe has advanced funds, or violations concerning the use and protection of trademarks or the quality of Ella Cafe products.
For other curable defaults not listed in the 10-day cure period, Ella Cafe provides a 30-day cure period after delivering written notice. It is important for a prospective franchisee to clarify with Ella Cafe whether failure to satisfy a final judgement falls under the 10-day or 30-day cure period, or if it is considered an incurable default, which could lead to immediate termination.