Can Ella Cafe change the required POS system, and if so, how will franchisees be notified?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
You must purchase, install, and maintain an electronic point-of-sale cash register system to record sales and transaction data (such as item ordered, price, and date of sale) that we designate. Currently, TOAST is the only approved point-of-sale system ("POS System") required to operate your Ella Coffee House; however, we reserve the right to change the POS System to any other POS System that we may designate and communicate the same to you via the Operations Manual. 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. You must install and maintain between two and four POS Systems (depending on the size of your Coffee House). The computer system and/or POS for your Franchised Business will be dedicated for the operation of your Ella Coffee House business and used for no other purpose.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, franchisees are required to use a designated point-of-sale (POS) system. Currently, the only approved POS system is TOAST. However, Ella Cafe retains the right to change the required POS system.
Ella Cafe will communicate any changes to the designated POS system to franchisees through the Operations Manual. This means that franchisees must stay updated with the Operations Manual to ensure they are using the correct POS system.
For a prospective franchisee, this implies that the cost of $2,500 to $10,000 for the POS system may not be a one-time expense, as updates or a complete change of systems may be required. There is no contractual limitation on the frequency or cost of these obligations. Franchisees are also required to sign a maintenance agreement and pay annual service fees, with estimated annual maintenance ranging from $4,800 to $7,200. Therefore, it is important to factor in potential future costs associated with POS system changes and maintenance when considering an Ella Cafe franchise.