Who selects the physician to determine permanent disability for an Ella Cafe Developer?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
Upon the permanent disability of Developer (if Developer is a natural person) or any Principal who is a natural person, Franchisor may, in its sole discretion, require such interest to be transferred to a third party in accordance with the conditions described in this Section 8. within six months after notice to Developer. "Permanent disability" means any physical, emotional, or mental injury, illness, or incapacity which would prevent a person from performing the obligations set forth in this Agreement or in any guaranty made part of this Agreement for at least 90 consecutive days and from which condition recovery within 90 days from the date of determination of disability is unlikely.
Permanent disability will be determined by a licensed practicing physician selected by Franchisor, upon examination of the person; or if the person refuses to submit to an examination, then such person automatically will be deemed permanently disabled as of the date of such refusal for the purpose of this Section 8.8.2.
The costs of any examination required by this Section 8.8.2. will be paid by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the franchisor selects the physician who determines permanent disability for a Developer. If a Developer (if a natural person) or any Principal who is a natural person experiences a physical, emotional, or mental injury, illness, or incapacity that prevents them from performing their obligations for at least 90 consecutive days, and recovery within 90 days is unlikely, the franchisor can require the interest to be transferred to a third party.
The determination of permanent disability is made by a licensed practicing physician selected by Ella Cafe. This physician will examine the person in question. If the person refuses to submit to an examination, they will automatically be deemed permanently disabled as of the date of refusal for the purposes of transferring the interest.
The FDD states that Ella Cafe will cover the costs of any examination required to determine permanent disability. This clause protects Ella Cafe by ensuring a consistent and unbiased assessment of a developer's ability to continue operating the franchise, while also outlining the financial responsibility for the examination.