Are the costs associated with e-commerce programs for Ella Cafe in addition to other advertising fees?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee must at all times cooperate with Franchisor and actively participate in any and all social media and other e-commerce advertising programs, management programs, and other platforms Franchisor requires and pay Franchisor or a third-party provider the costs associated with such programs or platforms.
The costs and/or fees associated with these programs are in addition to other advertising fees under this Agreement.
- **9.10.
Business Directory Listings**.
Franchisee must place and pay the cost of business listings in such print and online directories and categories, whether electronic or hard copy, as Franchisor may require from time to time.
Amounts paid for business directory listings will not be credited toward any of the expenditures required by this Section 9.
- **9.11.
Social Media and E-commerce.** Franchisor may create and license to the Franchisee, social media accounts, e-mail marketing software accounts and other electronic accounts that use the Marks or any portion of them, used by the Franchisee with any Internet directory, website, platform, or similar item in the operation of the Franchised Business.
The Franchisee may not create websites, social media accounts, e-mail marketing software accounts or other comparable accounts outside of those which Franchisor license to the Franchisee.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the costs associated with e-commerce programs are indeed in addition to other advertising fees. As stated in section 9.9, franchisees must cooperate with Ella Cafe in e-commerce advertising programs and pay the costs associated with these programs to Ella Cafe or a third-party provider. The document explicitly states that these costs and fees are separate from and in addition to any other advertising fees required under the franchise agreement.
This means that franchisees should anticipate and budget for these e-commerce costs as a distinct expense, separate from general advertising obligations. It is important for prospective franchisees to understand the full scope of these e-commerce programs and their associated costs. This includes understanding which specific platforms or programs Ella Cafe requires participation in, and how much these programs are likely to cost.
Franchisees are also required to place and pay for business listings in print and online directories, and these amounts will not be credited toward any other advertising expenditures required by the agreement. Ella Cafe may also create and license social media accounts and e-mail marketing software accounts to the franchisee. However, the franchisee may not create websites, social media accounts, or email marketing software accounts outside of those licensed by Ella Cafe.