factual

Can Ella Cafe terminate a Market Cooperative?

Ella_Cafe Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (f) Termination.

Franchisor may terminate any Market Cooperative.

Any funds left in a Market Cooperative upon termination will be transferred to the Brand Marketing Fee.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2024 FDD)

According to Ella Cafe's 2024 Franchise Disclosure Document, Ella Cafe has the authority to terminate any Market Cooperative. Any funds remaining in the Market Cooperative upon termination will be transferred to the Brand Marketing Fee.

Ella Cafe may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas. If a Market Cooperative for the geographic area encompassing the Location has been established at the time Franchisee commences operations, the Franchisee shall immediately become a member of such Market Cooperative. If a Market Cooperative for the geographic area encompassing the Location is established during the term of this Agreement, the Franchisee shall become a member of such Market Cooperative within 30 days. Ella Cafe will not require Franchisee to be a member of more than one Market Cooperative.

Each Market Cooperative will be organized and governed in a form and manner, and shall commence operations on a date, determined by Ella Cafe. Ella Cafe may require the Market Cooperative to adopt bylaws or regulations prepared by Ella Cafe. Unless otherwise specified by Ella Cafe, the activities carried on by each Market Cooperative shall be decided by a majority vote of its members. Ella Cafe will be entitled to attend and participate in any meeting of a Market Cooperative. Any Ella Coffee House business owned by Ella Cafe in the Market Cooperative shall have the same voting rights as those owned by its franchisees.

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.