When is the royalty fee due for an Ella Cafe franchise for any given week?

According to Ella Cafe's 2024 Franchise Disclosure Document, the royalty fee for any given week is due on the first Tuesday of the following week. However, the franchisor, Ella Coffee Company, LLC, retains the right to specify another day of the week or month for the royalty fee payment.

This means that as an Ella Cafe franchisee, you should expect to pay royalties every week, with the standard due date being the first Tuesday after the week's end. However, Ella Coffee Company, LLC has the flexibility to change this due date, so franchisees must stay informed of any changes to avoid late payment penalties or potential breaches of the franchise agreement.

It is important to note that withholding royalties is considered a material breach of the agreement. Ella Coffee Company, LLC also has the right to define the applicable accounting periods for calculating and paying amounts due, which may be defined in terms of days, weeks, or months, at their sole discretion. Franchisees will receive at least 30 days' advance written notice of any changes to the accounting period.

Ella Coffee Company, LLC may also determine the royalty fee amount by accessing and retrieving gross sales data directly from the franchisee's computer system. On each due date, they will transfer the royalty fee, brand marketing fee contributions, and any other amounts due from the franchisee's commercial bank operating account.