What is the purpose of the Ella Cafe Franchise Disclosure Questionnaire?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
As you know, Ella Coffee Company, LLC ("we" or "us") and you are preparing to enter into a Franchise Agreement for the operation of an ELLA COFFEE HOUSE franchise. The purposes of this Questionnaire are to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate, or misleading, to be certain that you have been properly represented in this transaction, and to be certain that you understand the limitations on claims you may make by reason of the purchase and operation of your franchise. You cannot sign or date this Questionnaire the same day as the Receipt for the Franchise disclosure document, but you must sign and date it the same day you sign the Franchise Agreement and pay your franchise fee.
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the Franchise Disclosure Questionnaire serves several purposes. It aims to verify that prospective franchisees have not received any unauthorized, untrue, inaccurate, or misleading statements or promises from Ella Cafe during the franchise sales process. The questionnaire also seeks to confirm that franchisees have obtained proper representation and understand the limitations on claims they can make regarding their franchise purchase and operation.
Specifically, Ella Cafe uses the questionnaire to ensure that franchisees acknowledge the risks involved in operating an Ella Cafe franchise and that their success depends largely on their own skills, abilities, and efforts, as well as external factors. By completing the questionnaire, franchisees confirm they have reviewed the Franchise Agreement and the franchise disclosure document, understand the information contained within, and have discussed the benefits and risks with a professional advisor.
It is important to note that prospective franchisees residing in or intending to operate in Maryland are instructed not to complete the questionnaire. Furthermore, the questionnaire cannot be signed on the same day the franchisee receives the Franchise Disclosure Document but must be signed on the same day the Franchise Agreement is signed and the franchise fee is paid. This timing ensures that franchisees have had sufficient time to review all documents and seek advice before committing to the franchise.