Under what circumstances can an Ella Cafe franchisee request to relocate their 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 | |
| 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. |
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, a franchisee cannot relocate their Coffee House without the franchisor's express prior written consent. However, if the franchisee is unable to continue operating at the current location due to an event of Force Majeure or other reasons that do not constitute a default under the Franchise Agreement, they can request the franchisor's consent to relocate within their designated area.
Force Majeure typically refers to unforeseeable circumstances that prevent someone from fulfilling a contract, such as natural disasters, war, or government regulations. If such an event occurs, and the franchisee is not in default of their agreement, Ella Cafe will consider a relocation request.
Ella Cafe's approval for relocation may not be unreasonably withheld, but it can be conditional. The franchisor may require the franchisee to pay an agreed minimum fee during the period the Coffee House is not in operation. This condition likely aims to protect Ella Cafe's revenue stream and ensure the franchisee remains committed to the brand during the transition.