How much is the Non-Compliance fee for an Ella Cafe franchise?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Software | Currently, $100 - | Monthly | |
| Subscription | $200 per month | ||
| Non-Compliance | $500 | On demand | |
| Fee | |||
| Customer Rewards, and Gift Cards | Currently not implemented by us but may be implemented in future | As invoiced | Fees for access management of customer rewards, and/or gift card system and redemption. |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, there are two distinct fees related to non-compliance. The first is simply labeled the "Non-Compliance Fee" and is a flat $500, due on demand. This fee appears to be a penalty for specific instances of non-compliance.
The second fee is the "Non-Compliance Cure Costs and Fee," which covers situations where Ella Cafe steps in to correct a franchisee's non-compliance on their behalf. This fee is calculated as Ella Cafe's out-of-pocket costs and internal cost allocation, plus an additional 10%. For example, if a franchisee fails to maintain required insurance, Ella Cafe may purchase the insurance and charge the franchisee for the cost of the insurance plus a 10% administrative fee.
It's important for prospective Ella Cafe franchisees to understand the circumstances that could trigger these non-compliance fees and to maintain open communication with the franchisor to avoid such situations. Understanding the specific triggers for each fee and maintaining compliance with the franchise agreement can help franchisees avoid these additional costs.