What written communication will memorialize the location and designated area for the Ella Cafe franchise?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.1 Grant. Franchisor hereby grants Franchisee the right to develop and continuously operate a Coffee House at the Location identified in Attachment 2, to deliver authorized products to locations in accordance with the Standards (which may include distance or area restrictions), and to use the Marks in the operation and promotion of the Coffee House. If no Location is stated on when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1. Franchisee hereby undertakes the obligation and agrees to continually operate the Coffee House during the Term hereof and strictly according to the terms and conditions of this Agreement. This Agreement does not grant Franchise any right, among others: (a) to sublicense the use of the System or Marks; (b) to co-brand with another concept or brand; (c) to offer or sell products or services at or from any location other than the Franchised Location (such as from a cart, kiosk, or food truck); (d) to ship ELLA products, regardless of the destination; or (e) distribute ELLA products through other channels, such as supermarkets, convenience stores or other retailers, or other food service providers.
- 2.2 Designated Area. Upon Franchisee's acquisition of the Location for the Coffee House, Franchisor will amend Attachment 2 to include the Location and a description of the Designated Area surrounding the Location or will memorialize such information in another form of written communication, signed by Franchisor and Franchisee.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the location and designated area for the franchise will be memorialized in Attachment 2 of the Franchise Agreement or in another form of written communication signed by both Ella Cafe and the franchisee. Specifically, the franchise agreement states that upon the franchisee's acquisition of a location for the coffee house, Ella Cafe will update Attachment 2 to include the location and a description of the designated area surrounding it. Alternatively, this information may be documented in a separate written communication that is signed by both parties.
Attachment 2 to the franchise agreement includes fillable fields to specify the designated area, site selection area, and the approved location of the franchised business. This attachment also includes a field for the opening date.
This ensures that both Ella Cafe and the franchisee have a clear, documented understanding of the territory granted to the franchisee and the specific location of the business. This is a common practice in franchising to avoid disputes over territory and to define the franchisee's rights and responsibilities within a specific geographic area.