When is the Ella Cafe Non-Compliance Cure Costs and Fee due?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Non-Compliance Cure Costs and Fee | Our out-of-pocket costs and internal cost allocation, plus 10% | When billed | We may cure your non-compliance on your behalf (for example, if you do not have required insurance, we may purchase insurance for you), and you will owe our costs plus a 10% administrative fee. |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the Non-Compliance Cure Costs and Fee is due 'When billed.' This fee covers Ella Cafe's costs, plus a 10% administrative fee, if they need to correct any non-compliance issues on behalf of the franchisee.
For example, if a franchisee fails to maintain the required insurance, Ella Cafe may purchase the insurance coverage and then bill the franchisee for the cost of the insurance plus an additional 10%. This ensures that Ella Cafe can take swift action to maintain brand standards and legal compliance across all franchise locations, while passing the costs directly to the franchisee responsible for the non-compliance.
It is important for prospective franchisees to understand the circumstances that could lead to non-compliance and the associated costs. Maintaining proper insurance, adhering to system specifications, and submitting required reports are key to avoiding these fees. Franchisees should budget for the possibility of these costs and ensure they have systems in place to remain compliant with all franchise agreement terms.