What account information is Ella Cafe requiring from the franchisee in the Authorization Agreement?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
nchisee 90 days advance written notice of any change to the POS System requirements. Franchisee must acquire, install, and maintain such anti-virus and anti-spyware software as Franchisor requires and pay related costs, and Franchisee must adopt and implement such Internet user policies as Franchisor may prescribe for purposes of avoiding, blocking, and eliminating viruses and other conditions designed to interfere with operation of the POS System.
- 10.1.1 The computer system and/or POS for your Ella Coffee House will be dedicated for the operation of your Ella Coffee House business and used for no other purpose.
- 10.1.2 All sales must be processed through the approved POS systems and reported as gross sales and no other supplemental or secondary POS system may be used.
- 10.1.3 Consistent with the foregoing, among other things, Franchisor reserves the right periodically to undertake technology initiatives, the purpose of which would be enhance the technology associated with the franchise system including, without limitation, enhanced internet capability, use of proprietary digital applications and enhanced support services. Although Franchisor cannot estimate the future costs of the Computer System or required service or support, and although these costs might not be fully amortizable over the remaining term of this Agreement, Franchisee agrees to incur the costs of obtaining the computer hardware and software comprising the Computer System (or additions or modifications) and required service or support. Franchisor has no obligation to reimburse Franchisee for any Computer System costs. As otherwise permitted in this Agreement, Franchisor may access the Computer System and retrieve all pertinent information relating to the operation of the Coffee House in areas that we have the ability to control and/or remedy.
- 10.1.4 Notwithstanding the fact that Franchisee must purchase, use, and maintain the Computer System consistent with our standards and specifications, Franchisee will have sole and complete responsibility for: (1) the acquisition, operation, maintenance, updates and upgrading of the Computer System, including compliance with the standards that we periodically require; (2) the manner in which your Computer System interfaces with our computer system and those of other third parties; (3) the installation, maintenance and support of the Computer System, although Franchisor may from time to time require or recommend third parties to provide these functions; and (4) any and all consequences that may arise if the Computer System is not properly operated, maintained and upgraded, including but not limited to virus and spyware issues.
- 10.1.5 All of Franchisee's Computer Systems must be compliant with all applicable laws, regulations, and commonly accepted industry standards, including without limitation those laws, regulations, and commonly accepted industry standards relating to privacy, data security, and the processing and protection of confidential personal information, including without limitation the
Payment Card Industry Data Security Standards and all other standards applicable to electronic payments that may be published from time to time by payment card companies.
- 10.2 Software. Franchisee must: (a) use any proprietary software programs, system documentation manuals, and other proprietary materials that Franchisor requires in connection with the operation of the Coffee House ; (b) input and maintain in the POS System such data and information as Franchisor prescribes in the Manual, software programs, documentation, or otherwise; and (c) purchase new or upgraded software programs, system documentation manuals, and other proprietary materials at then-current prices whenever Franchisor adopts such new or upgraded programs, manuals, and materials system-wide.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
Based on the 2024 FDD, Ella Cafe requires franchisees to use a dedicated computer system and POS (Point of Sale) system exclusively for their Ella Cafe business. All sales must be processed through the approved POS systems and reported as gross sales, and no other supplemental or secondary POS system may be used. Ella Cafe reserves the right to access the Computer System and retrieve all pertinent information relating to the operation of the Coffee House in areas that they have the ability to control and/or remedy.
Franchisees are responsible for the acquisition, operation, maintenance, updates, and upgrading of the Computer System, ensuring it interfaces correctly with Ella Cafe's and third-party systems. They must also handle the installation, maintenance, and support of the system, although Ella Cafe may recommend third parties for these functions. Franchisees bear the consequences of any failures in operating, maintaining, or upgrading the Computer System, including issues like viruses and spyware.
The computer systems used by Ella Cafe franchisees must comply with all applicable laws, regulations, and commonly accepted industry standards, including those related to privacy, data security, and the processing and protection of confidential personal information. This ensures that all data handling practices meet legal and industry requirements.
Additionally, upon termination or expiration of the franchise agreement, the franchisee must notify the telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee's right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and authorize their transfer to Franchisor or any new franchisee as may be directed by Franchisor.