Does the termination or expiration of the Ella Cafe development agreement affect existing Franchise Agreements?

According to Ella Cafe's 2024 Franchise Disclosure Document, the termination or expiration of the Development Agreement does not impact any existing Franchise Agreements. Specifically, upon the termination or expiration of the Development Agreement, the developer's right to develop further Ella Cafe locations for which a Franchise Agreement has not been signed ceases.

However, the document explicitly states that the termination or expiration of the Development Agreement will not affect any rights or obligations under any Franchise Agreement that is already in effect at the time of termination or expiration. This means that if a developer has already signed a Franchise Agreement for a particular Ella Cafe location, that agreement remains valid and enforceable, regardless of what happens to the overall Development Agreement.

This provision protects the franchisee's investment and operational rights under existing franchise agreements, providing assurance that their business operations will not be disrupted by the termination or expiration of the broader development arrangement. This is a standard practice in franchising, ensuring stability for individual franchisees who have already committed to operating a location.