factual

Does Ella Cafe represent that the execution and performance of transactions contemplated by the Franchise Agreement are permitted by its governing documents?

Ella_Cafe Franchise · 2024 FDD

Answer from 2024 FDD Document

11.1. Representations of Franchisor. Franchisor represents and warrants that Franchisor is duly organized and validly existing under the laws of the state of its formation and the execution of this Agreement and the performance of the transactions contemplated by this Agreement are permitted by Franchisor's governing documents and have been duly authorized.

11.2. Representations of Developer.

11.2.1. Developer represents and warrants that the ownership information set forth in the Key Terms is accurate and complete in all material respects, and Developer hereby agrees to notify Franchisor in writing prior to any change in the ownership information set forth in the Key Terms, and in compliance with the transfer requirements of Section 8. of this Agreement. Developer further represents and warrants to Franchisor that: (a) Developer is duly organized and validly existing under the laws of the state of its formation; (b) Developer's governing documents will, at all times, provide that Developer's activities are confined exclusively to the development of Coffee Houses (and to the operation of Coffee Houses if Developer is also Franchisee under any Franchise Agreement); (c) neither Developer nor any of its Affiliates nor Owners own, operate, or have any financial or beneficial interest in any business that is the same as or similar to a Ella Coffee Company, LLC Coffee House; and (d) the execution of this Agreement and the performance of the transactions contemplated by this Agreement are permitted by Developer's governing documents and have been duly authorized. If Developer is two or more individuals or entities, then the rights and obligations of this Agreement may only be exercised jointly, but the liabilities of this Agreement will be joint and several as to all individuals and entities.

Source: Item 23 — RECEIPTS (FDD pages 50–181)

What This Means (2024 FDD)

According to Ella Cafe's 2024 Franchise Disclosure Document, Ella Cafe represents and warrants that it is duly organized and validly existing under the laws of the state of its formation. Ella Cafe also represents that the execution of the Franchise Agreement and the performance of the transactions contemplated by the agreement are permitted by Ella Cafe's governing documents and have been duly authorized.

This representation provides assurance to the prospective franchisee that Ella Cafe has the legal authority and structure to enter into the franchise agreement and fulfill its obligations. It confirms that the franchise agreement is not in conflict with Ella Cafe's own organizational documents or any existing laws.

Furthermore, the developer (franchisee) also represents and warrants that they are duly organized and validly existing under the laws of the state of their formation. The developer also represents that their governing documents permit the execution and performance of the transactions contemplated by the Franchise Agreement and have been duly authorized. This mutual representation ensures both parties have the legal capacity to enter into and perform the agreement.

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.