When is the Non-Compliance fee due for an Ella Cafe franchise?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Non-Compliance | $500 | On demand | |
| Fee | |||
| 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, there are two types of non-compliance fees: a general Non-Compliance Fee and Non-Compliance Cure Costs and Fee. The Non-Compliance Fee is $500 and is due on demand. This fee appears to be a penalty for failing to meet certain requirements or standards set by Ella Cafe.
In addition to the general Non-Compliance Fee, Ella Cafe may also charge Non-Compliance Cure Costs and Fee. This fee covers Ella Cafe's expenses if they take action to correct your non-compliance on your behalf, such as purchasing required insurance if you fail to do so. This fee is calculated as the out-of-pocket costs and internal cost allocation, plus 10%, and is due when billed.
As an Ella Cafe franchisee, it's important to understand the specific actions or omissions that could trigger these non-compliance fees and to maintain open communication with the franchisor to address any potential issues promptly. Paying attention to the due dates for all fees is crucial to avoid additional penalties or late fees.