factual

For what purposes are telephonic or electronic appearances permitted in Ella Cafe mediations?

Ella_Cafe Franchise · 2024 FDD

Answer from 2024 FDD Document

Mediation must be conducted in person, and no telephonic or electronic appearance by any of the parties or their counsel is permitted except for the purposes of scheduling mediation or discussion non-material mediation-related matters.

  • (f) Neither illness, Covid, inconvenience, weather, or any other reason shall serve to excuse your personal appearance for mediation.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2024 FDD)

According to Ella Cafe's 2024 Franchise Disclosure Document, telephonic or electronic appearances are permitted only for specific, limited purposes during mediation. Specifically, such appearances are allowed for scheduling the mediation or discussing non-material, mediation-related matters. This means that the actual mediation sessions require in-person attendance.

This requirement for in-person mediation, with limited exceptions for administrative matters, underscores the importance Ella Cafe places on direct engagement during dispute resolution. Franchisees should be prepared to travel and attend mediation sessions in person, regardless of potential inconveniences. The FDD explicitly states that reasons such as illness, Covid, inconvenience, or weather will not excuse personal appearance for mediation.

The in-person mediation requirement could pose a financial burden on franchisees, as they will be responsible for travel expenses and potentially attorney's fees related to attending the mediation. This is a departure from mediations that allow for remote participation to save on costs. Franchisees should factor in these potential costs when evaluating the franchise opportunity and consider the likelihood of disputes arising during the franchise term.

It is important to note that certain types of disputes are excluded from the mediation requirement altogether, such as those relating to past due amounts owed to Ella Cafe, the Marks, Copyrighted Works, or Ella Cafe's Confidential Information. In these cases, Ella Cafe and the franchisee each have the right to seek temporary restraining orders and temporary or preliminary injunctive relief in court.

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.