Who is ultimately responsible for site selection for an Ella Cafe franchise?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
- (iii) Franchisor may conduct on-site site selection evaluations, provide geographic market data, or lease availability on its own initiative or in response to Franchisee's reasonable request, if deemed necessary by Franchisor, but Franchisor will not provide assistance or consider a request for an on-site evaluation until all information and materials described in Section 6.2. below have been received.
If Franchisor conducts an on-site evaluation of a proposed site(s) or provides in-person site selection assistance, Franchisee must reimburse Franchisor its related outof-pocket costs, including the costs of all transportation, lodging, and meals.
Ultimately, site selection is solely Franchisee's responsibility.
- **6.2.
Franchise Site Application**.
For each proposed site that Franchisee identifies, Franchisee must deliver to Franchisor in the form specified by Franchisor, a description of the site, evidence satisfactory to Franchisor demonstrating that the site satisfies Franchisor's site selection guidelines, and such other information and materials as Franchisor may reasonably require, including, but not limited to, copies of a proposed lease or a contract of sale for the site.
If Franchisor requires the generation of a site evaluation report, Franchisor will pay for a total of one site evaluation report, which report may be administered by Franchisor or a third-party provider.
Franchisee will be required to pay Franchisor the costs Franchisor incurs for each additional site evaluation report required by Franchisor or requested by Franchisee.
Within 30 days of receiving Franchisee's site application and all additional requested information, Franchisor will notify Franchisee whether or not the site is approved.
If Franchisor does not provide notification within the 30-day time period, its silence is neither approval nor rejection of the site.
Franchisor's approval of a site does not constitute a representation, promise, warranty, or guarantee, express or implied, that the Coffee House will achieve a certain sales volume or level of profitability or will otherwise be successful; it means only that the proposed site meets Franchisor's minimum criteria for the Coffee House.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the franchisee is ultimately responsible for site selection. While Ella Cafe may conduct on-site evaluations, provide market data, or assist with lease availability, the final decision rests with the franchisee.
Before Ella Cafe will provide assistance, the franchisee must submit a site approval request packet with a description of the site and evidence that it meets Ella Cafe's site selection guidelines. Ella Cafe will pay for one site evaluation report, but the franchisee is responsible for the costs of any additional reports.
Ella Cafe's approval of a site only means that it meets the minimum criteria and does not guarantee any level of sales or profitability. The franchisee must identify a site within the Site Selection Area and obtain approval from Ella Cafe within 180 days of the Effective Date. If Ella Cafe does not accept the proposed location in writing within 30 days, it is considered rejected.