Under what conditions will Ella Cafe consent to the relocation of a franchised business?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
You do not have the right to relocate your business, and we have no obligation to approve any request for relocation. You may relocate the Franchised Business, only with our prior written consent. We will consent to relocation if your lease expires or terminates through no fault of yours, or if the premises is destroyed or materially damaged by fire, flood, or other natural catastrophe and you are not in default of the franchise agreement or any other agreement with us. If applicable and if approved, you must reimburse us our costs associated with review and approval of your new location for your Franchised Business.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, franchisees do not have the right to relocate their business and Ella Cafe is under no obligation to approve any relocation request. However, Ella Cafe may provide written consent for relocation under specific circumstances.
Ella Cafe will consider relocation if the franchisee's lease expires or terminates through no fault of their own. Relocation may also be approved if the premises is destroyed or materially damaged by fire, flood, or other natural catastrophe. In either of these scenarios, the franchisee must not be in default of the franchise agreement or any other agreement with Ella Cafe to be considered for relocation.
If Ella Cafe approves a relocation, the franchisee is responsible for reimbursing Ella Cafe for any costs associated with the review and approval of the new location. This means that in addition to the expenses of moving and setting up the new location, franchisees must also be prepared to cover Ella Cafe's administrative and evaluation costs. This is a fairly standard practice in franchising, as franchisors typically want to ensure that any new location meets their brand standards and has the potential to succeed.