What is the currently approved point-of-sale (POS) system that Ella Cafe franchisees are required to use?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
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Point of Sale and Computer Systems
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.
You must connect the POS System to a telephone line or other communications device, such as a computer, which is capable of accessing the internet via a third-party network. We anticipate this will cost you $2,500 to $10,000 to purchase or lease the systems. You must sign a maintenance agreement with the manufacturer of the POS system and your computer system that we designate and pay the annual service fees to the manufacturer directly. We estimate that your annual
maintenance will range from $4,800 to $7,200.
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, the only approved point-of-sale (POS) system that franchisees are required to use is TOAST. The FDD specifies that all sales must be processed through this approved POS system, and no other supplemental or secondary POS system is allowed.
Ella Cafe franchisees must install and maintain between two and four POS systems, depending on the size of their coffee house. The computer system and/or POS system must be dedicated solely to the operation of the Ella Cafe business. The FDD states that franchisees should anticipate spending between $2,500 and $10,000 to purchase or lease these systems.
Furthermore, franchisees are required to connect the POS system to a telephone line or other communications device with internet access. They must also sign a maintenance agreement with the POS system manufacturer and pay annual service fees directly to the manufacturer. The estimated annual maintenance cost ranges from $4,800 to $7,200. Ella Cafe also retains the right to change the designated POS system and will communicate any such changes to franchisees via the Operations Manual.