Can the payment frequency of the Ella Cafe royalty fee be less frequent than weekly?

According to Ella Cafe's 2024 Franchise Disclosure Document, the standard payment frequency for royalty fees is weekly. Franchisees must report their gross sales to Ella Cafe by Tuesday of the following week. However, Ella Cafe retains the discretion to modify the payment schedule for royalty fees. The franchise agreement states, "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."

This clause provides Ella Cafe with the flexibility to adjust the royalty fee payment schedule, potentially allowing for less frequent payments (e.g., bi-weekly or monthly) if they deem it appropriate. This modification is at Ella Cafe's discretion, not the franchisee's.

For a prospective Ella Cafe franchisee, this means that while the standard is weekly royalty payments, there is a possibility of a different payment schedule being implemented at some point during the franchise term. It would be prudent to discuss with Ella Cafe the conditions under which they might consider a less frequent payment schedule and whether such a change is likely or common.