Who is responsible for the costs of collection incurred by Ella Cafe when attempting to collect payments?

According to Ella Cafe's 2024 Franchise Disclosure Document, the guarantor is responsible for covering all costs incurred by Ella Coffee Company, including reasonable attorney fees, when enforcing the guaranty. This means that if Ella Cafe has to take legal action to ensure payments are made, the guarantor is responsible for covering those costs.

This obligation is part of a broader agreement where the guarantor unconditionally guarantees that the franchisee will fulfill every commitment outlined in the Franchise Agreement. This includes not only payments but also every other responsibility the franchisee has to Ella Coffee Company. The guarantor's responsibilities extend to any agreement between the franchisee and Ella Coffee Company, regardless of whether it's specifically mentioned in the Franchise Agreement.

The guarantor also waives several rights, including the right to require Ella Coffee Company to first pursue action against the franchisee before seeking payment from the guarantor. They also relinquish rights to reimbursement or subrogation claims against the franchisee that might arise from fulfilling their obligations under the guaranty. This waiver simplifies and streamlines Ella Cafe's ability to collect payments, as they can directly pursue the guarantor without needing to exhaust other options first.

Furthermore, the guarantor's liability remains intact even if there are amendments to the Franchise Agreement, extensions of time granted to the franchisee, or acceptance of partial payments. The guarantor is also responsible for covering costs associated with enforcing the guaranty, including attorney fees. This comprehensive set of obligations ensures that Ella Cafe has a direct and reliable avenue for securing payments, with the guarantor bearing the financial responsibility for any collection efforts.