Under what circumstances may an Ella Cafe franchisee request to relocate the Coffee House?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee will not relocate the Coffee House without Franchisor's express prior written consent.
If Franchisee is unable to continue the operation of the Coffee House at the Location because of the occurrence of an event of Force Majeure (or for other reasons not constituting an event of default under this Agreement), Franchisee may request Franchisor's consent to relocate the Coffee House to another location in the Designated Area.
Franchisor's approval may not be unreasonably withheld but may be conditioned upon the payment of an agreed minimum fee to Franchisor during the period in which the Coffee House is not in operation.
Selection of the relocation site and Coffee House construction, renovation, and opening procedures and timelines will be governed by this Article 6.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, a franchisee cannot relocate their Coffee House without the express prior written consent from Ella Cafe. However, if the franchisee is unable to continue operating at their current location due to an event of Force Majeure, or for other reasons that do not constitute a default under the Franchise Agreement, the franchisee may request consent from Ella Cafe to relocate within their designated area.
Ella Cafe's approval for relocation may be subject to conditions, including the payment of an agreed minimum fee to Ella Cafe during the period the Coffee House is not in operation. The selection of the new relocation site, along with construction, renovation, opening procedures, and timelines, will be governed by the terms outlined in Article 6 of the Franchise Agreement.
This means that while franchisees do not have the unilateral right to move their Ella Cafe location, the franchisor will consider relocation requests under specific circumstances. The franchisee should be prepared to potentially pay a fee during any downtime and adhere to Ella Cafe's guidelines for site selection and construction when relocating.