How often does an Ella Cafe franchisee pay the royalty fee?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
ction of any nature, an ongoing monthly royalty fee equal to 7% of Gross Sales ("Royalty Fee") on a weekly basis or at a lower frequency as specified by Franchisor in its sole discretion in its Manual or other written communication. If Franchisor requires Franchisee to pay Royalty Fees through electronic transfer Franchisor may request revenue and sales reports directly from Franchisee from time to time and such reports shall be submitted to Franchisor via e-mail or intranet system or as specified by Franchisor. The Royalty Fee for any given week is due on the first Tuesday of the following week or on another day of the week or month as Franchisor may specify from time to time.
- 4.3 Other Payments. In addition to all other payments provided for in this Agreement, Franchisee must pay Franchisor and its Affiliates and all of Franchisee's third-party vendors, suppliers, and landlord promptly when due:
- (i) All amounts advanced by Franchisor or which Franchisor has paid, or for which it has become obligated to pay on Franchisee's behalf for any reason whatsoever.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the Royalty Fee for any given week is due on the first Tuesday of the following week or on another day of the week or month as Ella Cafe may specify from time to time.
Ella Cafe may request revenue and sales reports directly from the franchisee from time to time and such reports shall be submitted to Ella Cafe via e-mail or intranet system or as specified by Ella Cafe. If Ella Cafe requires the franchisee to pay Royalty Fees through electronic transfer, on each Due Date, Ella Cafe will transfer from the franchisee's commercial bank operating account the Royalty Fee, Brand Marketing Fee Contributions, and any other amounts due and owing.
Withholding royalties or any other amounts due Ella Cafe is a material breach of the Franchise Agreement. Ella Cafe has the right to define applicable accounting periods for purposes of calculating and paying amounts due under the Franchise Agreement. Each period, which may be defined in terms of days, weeks, or months, in Ella Cafe's sole discretion, will be considered an "Accounting Period" for all purposes under the Franchise Agreement. Ella Cafe will provide the franchisee at least 30 days advance written notice of any change in any Accounting Period.