factual

What pre-opening assistance does Ella Cafe provide to franchisees?

Ella_Cafe Franchise · 2024 FDD

Answer from 2024 FDD Document

s Agreement, we may impose a fee ("Default Fee") in an amount up to $1,500 per event of default, plus the cost of re-inspections and the costs enforcing compliance. You must pay the Default Fee within 3 days of our demand.

ARTICLE 5. TRAINING AND ASSISTANCE

  • 5.1 Pre-Opening Assistance. In addition to the site selection assistance described in Section 6.1, Franchisor will provide pre-opening consultation and advice it deems appropriate by telephone or other remote means, which may include advice regarding site development and build-out; training; purchasing and inventory control; and such other matters as Franchisor deems appropriate. If Franchisee requests on-site assistance, or if Franchisor deems on-site assistance necessary, Franchisor may at its sole discretion provide such service, and upon which, the Franchisee must reimburse Franchisor the costs of transportation, lodging, and meals for the individual(s) providing such on-site assistance. If requested by Franchisee, Franchisor may review and advise on Franchisee's pre-opening business plan and financial projections. Franchisee acknowledges that Franchisor accepts no responsibility for the performance of the Franchised Business.
  • 5.2. Initial Training. If this is Franchisee's first Coffee House, before the Opening Date of the Coffee House, Franchisor shall provide standard pre-opening training to the Principal Executive and up to 2 other employees, at Franchisor' headquarters and/or any other location designated by the Franchisor. Principal Executive and up to two employees must attend and complete to Franchisor's satisfaction, Franchisor's then-current initial training program. The initial training program is provided at no charge for up to 3 individuals including the Principal Executive and will take place at a location and time that Franchisor designates. At Franchisee's request, Franchisor may permit additional individuals to attend initial training, subject to space availability. If Franchisee desire to have additional personnel participate in the training program, Franchisor may provide initial training to such additional personnel at any of our scheduled initial training courses at our then-current fee upon commencement of the training program, which is currently $500.00 per day per trainer (maximum 8 hours per day) plus any reasonable out-of-pocket expense for such trainer. Franchisee is responsible for all costs and expenses of complying with Franchisor's training requirements including, without limitation, wages, travel, lodging, and dining costs for all of Franchisee's employees who participate in the training.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2024 FDD)

According to Ella Cafe's 2024 Franchise Disclosure Document, the franchisor offers several forms of pre-opening assistance to franchisees. Ella Cafe provides pre-opening consultation and advice via telephone or other remote means, covering areas such as site development and build-out, training, purchasing and inventory control, and other matters deemed appropriate by the franchisor. Additionally, Ella Cafe will provide standard pre-opening training to the Principal Executive and up to 2 other employees if it is the franchisee's first coffee house. This training will take place at the franchisor's headquarters or another designated location.

Ella Cafe will also make available one of its representatives, either in person or virtually at the franchisor's discretion, to assist in familiarizing the franchisee's staff with Ella Coffee House techniques and provide general guidance during the opening of the franchised business. If the franchisee requests on-site assistance, or if Ella Cafe deems it necessary, the franchisee must reimburse Ella Cafe for the costs of transportation, lodging, and meals for the individuals providing the assistance.

Furthermore, if requested by the franchisee, Ella Cafe may review and advise on the franchisee's pre-opening business plan and financial projections. However, the FDD clearly states that Ella Cafe accepts no responsibility for the performance of the franchised business. The franchisee is also responsible for all costs and expenses related to complying with training requirements, including wages, travel, lodging, and dining costs for all participating employees. It is important to note that Ella Cafe reserves the right to modify the initial training program at its sole discretion and can vary the length and content of the training based on the experience and skill level of the individuals attending.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.