What is the Ella Cafe Transfer Fee, and when is it payable?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs we incur | When transfer occurs | Payable if you sell your business. |
| Transfer For Convenience | No fee to transfer for convenience of ownership or non controlling interest, except reimbursement of our attorneys' fees | When transfer is requested | Transfer for convenience of ownership is when an individual franchisee assigns his or her rights to a corporation, limited liability company, or other entity controlled by the same individual. |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the standard transfer fee is $10,000, in addition to any broker fees and out-of-pocket costs that Ella Cafe incurs during the transfer process. This fee is payable when the transfer of the Ella Cafe business occurs, specifically when the franchisee sells their business to another party.
It's important to note that there is an exception to this fee. If a franchisee transfers their rights to a corporation, limited liability company, or another entity they control for convenience of ownership or non-controlling interest, there is no transfer fee. However, the franchisee is still responsible for reimbursing Ella Cafe's attorney's fees associated with the transfer.
This transfer fee is a standard practice in franchising. It compensates Ella Cafe for the administrative and legal costs associated with reviewing and approving the transfer, as well as for the potential impact on the brand. Prospective franchisees should consider this fee when evaluating the potential resale value of their Ella Cafe franchise.