Under what circumstances will an Ella Cafe franchisee be charged a Non-Compliance fee?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
M 6 OTHER FEES**
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Software | Currently, $100 - | Monthly | |
| Sub |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, a franchisee may incur a Non-Compliance Fee of $500. This fee is due on demand, meaning Ella Cafe can request immediate payment.
This fee appears to be separate from other fees related to non-compliance, such as the "Non-Compliance Cure Costs and Fee," which covers Ella Cafe's expenses (plus a 10% administrative fee) if they take action to correct a franchisee's non-compliance on their behalf (e.g., purchasing required insurance if the franchisee fails to do so).
It is important for prospective Ella Cafe franchisees to understand the specific instances that would trigger the Non-Compliance Fee and to ensure they maintain compliance with all requirements outlined in the franchise agreement to avoid incurring this additional cost.