Within how many days must an Ella Cafe franchisee pay the Default Fee after demand?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
see to pay to Franchisor any fees or amounts described in this Agreement are not dependent on Franchisor' performance and are independent covenants by Franchisee. Franchisee shall make all such payments without offset or deduction.
4.13 Default Fee. If you are in default under this Agreement, at our discretion, and with
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, if a franchisee is in default of their agreement, Ella Cafe has the discretion to impose a Default Fee. This fee can be up to $1,500 per event of default, in addition to the costs of re-inspections and enforcing compliance. The franchisee is required to pay this Default Fee within 3 days of Ella Cafe's demand for payment.
This short payment window means that prospective Ella Cafe franchisees need to ensure they have sufficient cash flow to cover potential default fees in a timely manner. Failing to pay within the 3-day period could lead to further penalties or even termination of the franchise agreement.
It is important for franchisees to understand what constitutes a default under the agreement to avoid incurring these fees. Franchisees should also maintain open communication with Ella Cafe to address any issues promptly and potentially negotiate a payment plan if they are unable to pay the Default Fee within the specified timeframe.