What training programs is the Principal Executive of an Ella Cafe franchise required to complete?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
Unless a District manager is appointed, as described below: (a) the Principal Executive must attend and successfully complete Franchisor's initial training program and all additional training that Franchisor requires, to Franchisor's satisfaction; and (b) the Principal Executive must devote his or her full-time efforts to Coffee House operations and must not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitment.
Franchisor must approve the Principal Executive as meeting its then-current qualifications for such position.
If the Principal Executive ceases to serve in, or no longer qualifies for, such position, or transfers his or her equity interest, Franchisee must designate another qualified person to serve as Franchisee's Principal Executive within 30 days after the date the prior Principal Executive ceases to serve or no longer qualifies to serve.
Any proposed replacement Principal Executive must successfully complete the initial training program and such other training required by Franchisor and be approved by Franchisor before assuming his or her position as Principal Executive and, in no event, later than 90 days after the previous Principal Executive ceased to serve in such position.
- (b) If the Principal Executive will not devote full-time efforts to the management and operation of the Coffee House governed by this Agreement then, in addition to the Principal Executive, Franchisee must appoint an individual to serve as its District Manager.
Franchisee's District Manager must have full control over day-to-day Coffee House management and operations.
Franchisee's District Manager need not have an equity interest in the Business Entity, but must have completed Franchisor's initial training program and all additional training that Franchisor requires, to Franchisor's satisfaction.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 39–40)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the Principal Executive must attend and successfully complete the initial training program. If the Principal Executive will not devote full-time efforts to the management and operation of the Coffee House, Ella Cafe requires the franchisee to appoint a District Manager who must also complete the initial training program. The Principal Executive must also complete all additional training that Ella Cafe requires, to Ella Cafe's satisfaction.
The initial training program is provided at no charge for up to 3 individuals including the Principal Executive and will take place at a location and time that Ella Cafe designates. Ella Cafe reserves the right to modify the initial training program, at Ella Cafe's sole discretion, at any time and also reserves the right to vary the length and content of the initial training program based on the experience and skill level of any individual attending the program.
If the Principal Executive ceases to serve in, or no longer qualifies for, such position, or transfers his or her equity interest, the franchisee must designate another qualified person to serve as franchisee's Principal Executive within 30 days after the date the prior Principal Executive ceases to serve or no longer qualifies to serve. Any proposed replacement Principal Executive must successfully complete the initial training program and such other training required by Ella Cafe and be approved by Ella Cafe before assuming his or her position as Principal Executive and, in no event, later than 90 days after the previous Principal Executive ceased to serve in such position.
Ella Cafe may also offer and require the Principal Executive to attend additional training or refresher courses with no less than 30 days' notice. If the franchisee, Principal Executive, or general manager is required to attend a refresher-training program, Ella Cafe will charge a fee, which is currently $350 per training per person. The franchisee does not have to attend more than one of these programs in any calendar year, and these programs will not exceed three days during any calendar year. The franchisee is responsible for all costs and expenses of complying with Ella Cafe's training requirements including, without limitation, wages, travel, lodging, and dining costs for all of franchisee's employees who participate in the training.