Under what circumstances might Ella Cafe conduct on-site site selection evaluations?
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, Ella Cafe may conduct on-site site selection evaluations on its own initiative or in response to a franchisee's reasonable request, but only if deemed necessary by Ella Cafe. However, Ella Cafe will not provide assistance or consider a request for an on-site evaluation until all required information and materials are received from the franchisee as described in Section 6.2 of the FDD.
If Ella Cafe does conduct an on-site evaluation or provides in-person site selection assistance, the franchisee is responsible for reimbursing Ella Cafe's out-of-pocket costs. These costs include transportation, lodging, and meals for the personnel involved. Despite any assistance from Ella Cafe, the FDD clearly states that the ultimate responsibility for site selection rests solely with the franchisee.
To initiate the site selection process, the franchisee must provide Ella Cafe with a detailed description of the proposed site, evidence that the site meets Ella Cafe's site selection guidelines, and any other information or materials reasonably required by Ella Cafe. This may include copies of a proposed lease or a contract of sale for the site. Ella Cafe will pay for one site evaluation report, if required, which may be administered by Ella Cafe or a third-party provider. The franchisee is responsible for the costs of any additional site evaluation reports required by Ella Cafe or requested by the franchisee.
Within 30 days of receiving the franchisee's site application and all requested information, Ella Cafe will notify the franchisee whether the site is approved or not. If Ella Cafe fails to provide notification within this 30-day period, it does not imply either approval or rejection of the site. It's important to note that Ella Cafe's approval of a site only means that the site meets the minimum criteria for an Ella Cafe location and does not guarantee any specific sales volume, level of profitability, or overall success.