For Ella Cafe, under what condition is a District Manager required in addition to the Principal Executive?

If the Principal Executive will not devote full-time efforts to the management of the business contemplated by this Agreement, then, in addition to the Principal Executive, Developer must appoint an individual to serve as its District Manager.

Developer's District Manager must have full control over Developer's development activities.

Developer's District Manager need not have an equity interest in the Business Entity, but must have completed Franchisor's initial training program and all additional training that Franchisor requires, to Franchisor's satisfaction.

Developer's District Manager must devote his or her full-time efforts to management of the development of Coffee House contemplated by this Agreement and must not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitment.

If the District Manager ceases to serve in such position, Developer must designate another qualified person to serve as its District Manager within 30 days after the date the prior District Manager ceases to serve.

Any proposed replacement District Manager must

successfully complete the initial training program and such other training required by Franchisor before assuming his or her position as District Manager and, in no event, later than 90 days after the previous District Manager ceased to serve in such position.

Source: Item 23 — RECEIPTS (FDD pages 50–181)