Under what circumstances can 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 prior written consent of Ella Cafe. If a franchisee is unable to continue operations at their current location due to an event of Force Majeure, or for reasons that do not constitute a default under the Franchise Agreement, the franchisee may request consent from Ella Cafe to relocate to another location within their designated area.
Ella Cafe's approval for relocation may be subject to conditions, including the payment of a minimum fee agreed upon with Ella Cafe during the period the Coffee House is not operational. The selection of the new site, construction, renovation, opening procedures, and timelines will be governed by the terms outlined in Article 6 of the Franchise Agreement.
This means that while relocation is possible under specific circumstances, it is not guaranteed and is subject to Ella Cafe's approval and certain conditions. A prospective franchisee should carefully consider the potential costs and requirements associated with relocation, as well as the potential for business interruption and lost revenue during the relocation process.