What is the minimum fee that the Ella Cafe Franchisor may require during a Coffee House relocation?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
y make such on-site inspections as it may deem reasonably necessary to evaluate such progress, which visits may be through remote/virtual means. Franchisee will notify Franchisor of the scheduled date for completion of construction no later than 21 days prior to such date.
- 6.5. Relocation. Franchisee will not relocate the Coffee House without Franchisor's express prior written consent. If Franchisee is unable to continue the operation of the Coffee House at the Location because of the occurrence of an event of Force Majeure (or for other reasons not constituting an event of default under this Agreement), Franchisee may request Franchisor's consent to relocate the Coffee House to anot
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, a franchisee cannot relocate their Coffee House without the franchisor's express prior written consent. If a franchisee is unable to continue operating at their current location due to an event of Force Majeure or other reasons not constituting a default, they can request the franchisor's consent to relocate within their designated area.
The franchisor's approval for relocation may be conditioned upon the payment of an agreed minimum fee to the franchisor during the period the Coffee House is not in operation. This fee is intended to compensate the franchisor for the disruption and potential loss of revenue during the relocation process.
It is important for prospective Ella Cafe franchisees to understand the conditions under which relocation is permitted and the potential costs involved. Franchisees should discuss with the franchisor what factors would be considered reasonable grounds for relocation, how the 'agreed minimum fee' is calculated, and what the typical range of such fees has been for other franchisees in similar situations. This will help in anticipating potential financial obligations and making informed decisions about site selection and business planning.