Where will the amount of the current Technology Fee for Ella Cafe be indicated?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall operate the Franchised Business so that it is clearly identified and advertised as a "ELLA COFFEE HOUSE" business.
Franchisee shall use the trademark "ELLA", "ELLA COFFEE HOUSE" and the other Marks which now or hereafter may form a part of the System, on all signs, paper supplies, business cards, uniforms, advertising materials, technology platforms, signs and other articles in the identical combination and manner as the Franchisor may prescribe in writing and the Franchisee shall supply to the Franchisor samples or photographs of the same upon Franchisor's request.
Franchisee shall comply with all trademark, trade name, service mark and copyright notice marking requirements and Franchisee shall supply to the Franchisor samples or photographs of the same upon our request.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
Based on the 2024 Ella Cafe Franchise Disclosure Document excerpts, the specific location where the current Technology Fee amount is disclosed is not explicitly stated. However, Item 9.12 indicates that franchisees must use technology platforms prescribed by Ella Cafe. Item 22 refers to 'System Standards' which include technology such as POS systems, software, and communication systems. It also mentions technology platforms in section 9.12.
While the excerpts detail various fees such as the Initial Franchise Fee ($49,500), Royalty Fee (7% of Gross Sales), Brand Marketing Fee (up to 3% of Gross Sales), and Local Advertising (up to 3% of Gross Sales), a specific Technology Fee is not listed in the provided excerpts. The franchisee is required to use Ella Cafe's mandated technology platforms, and pay the costs associated with those platforms, but the exact amount of the technology fee is not specified in the provided excerpts.
A prospective Ella Cafe franchisee should inquire with the franchisor about the Technology Fee, specifically where this fee is detailed in the Franchise Agreement or other related documents. Understanding the amount and how it may change over time is crucial for financial planning. It would also be prudent to ask what specific technology is covered by the fee, and what technology costs, if any, are not covered by the fee.