What is the maximum number of days from the Effective Date that an Ella Cafe franchisee has to open their business?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.8 Opening Date. Franchisee shall open the Business to the public on or before the date stated in Attachment 2 ("Opening Date").
The Opening Date must be no later than 365 days from the Effective Date of the Franchise Agreement days from 180 days from the Effective Date of your Franchise Agreement.
If Franchisee is unable to open its Coffee House within required time period Franchisor may, but is not obligated to, extend the Opening Date deadline in its sole discretion, provided that Franchisee has sent the extension request to Franchisor, in writing, at least 60 days before the expiration of the time period allowed under this Section 6.9.
If Franchisee fails to open the Coffee House by the Opening Date and/or does not request and/or does not receive an extension as provided for in this Section 6.9., then Franchisor may terminate this Agreement in accordance with Section 14.2.
The Opening Date will be reflected in an amendment to Attachment 2 or by any other form of written communication from Franchisor that defines the Opening Date, and such Opening Date will dictate for purposes of this Agreement and will be fully incorporated into this Agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, a franchisee must open their business to the public no later than 365 days from the Effective Date of the Franchise Agreement. The document also states that the opening date must be no later than 180 days from the Effective Date of the Franchise Agreement. It appears that there is conflicting information regarding the opening date.
If a franchisee cannot open their Ella Cafe within the required timeframe, they may request a written extension from Ella Cafe at least 60 days before the deadline. The franchisor has the sole discretion to grant or deny this extension.
If the Ella Cafe franchisee fails to open the Coffee House by the Opening Date and does not request or receive an extension, Ella Cafe has the right to terminate the Franchise Agreement. The Opening Date will be formally documented in an amendment to Attachment 2 or through other written communication from Ella Cafe, which will then be incorporated into the Franchise Agreement.