Does Ella Cafe review the terms of the lease for a franchisee's Coffee House Location?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not review the terms of the lease for your Coffee House Location but require that your landlord acknowledge our rights as set forth in the lease rider attached as Attachment 7 to the FranchiseAgreement (the "Lease Rider"). We possessthe right to disapproveof a proposed lease if the landlord refuses to sign the Lease Rider in substantially the form set forth in Attachment 7 to the Franchise Agreement. The Lease Rider grants certain rights to us, including our right to be notified in the event of a lease default and, potentially, for us to enter the premises of your Coffee House.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–22)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, Ella Cafe does not review the lease terms for a franchisee's Coffee House location. Instead, Ella Cafe requires the landlord to acknowledge Ella Cafe's rights by signing a lease rider, which is included as Attachment 7 to the Franchise Agreement.
Ella Cafe retains the right to disapprove a proposed lease if the landlord refuses to sign this Lease Rider in its original form. The Lease Rider grants Ella Cafe specific rights, including notification in the event of a lease default and the potential right for Ella Cafe to enter the Coffee House premises.
This means that while Ella Cafe doesn't directly negotiate or review the lease terms, they ensure their interests are protected through the Lease Rider. A prospective franchisee should carefully review Attachment 7 to understand the rights Ella Cafe is securing and how those rights might impact the franchisee's obligations and operations. It is important for franchisees to understand that the location is subject to Ella Cafe's approval and must meet their specifications, as detailed in Item 11 of the FDD.