What forms of payment is an Ella Cafe franchisee required to accept from customers?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
include (but are not limited to) a customer feedback system, customer survey programs, and
mystery shopping. Franchisor shall share with Franchisee the results of these programs, as they pertain to the Business. Franchisee must meet or exceed any minimum score requirements set by Franchisor for such programs.
- 7.11 Payment Systems. Franchisee shall accept payment from customers in any form or manner designated by Franchisor (which may include, for example, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems). Franchisee shall purchase or lease all equipment and enter into all business relationships necessary to accept payments as required by Franchisor. Franchisee must at all times comply with payment card industry data security standards (PCI-DSS).
- 7.12 Gift Cards, Loyalty Programs, and Incentive Programs. At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Franchisor, in the manner specified by Franchisor in the Manual or otherwise in writing. Franchisee shall honor all valid gift cards and other pre-paid systems, regardless of whether issued by Franchisee or another Ella Coffee House business.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, franchisees must accept payment from customers in any form or manner designated by Ella Cafe. This includes, but is not limited to, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems. Ella Cafe also specifies that franchisees must accept debit cards, credit cards, stored value cards, or other non-cash payment systems and methods that Ella Cafe specifies periodically and participate in Ella Cafe's required payment procedures and collection of funds relating thereto. Franchisees are required to acquire and install all necessary hardware and/or software used in connection with these non-cash payment systems and pay the costs associated therewith.
Ella Cafe franchisees are required to submit all fees and payments to Ella Cafe in U.S. dollars and shall only accept payments related to the franchised business in U.S. dollars. Franchisees are expressly prohibited from accepting payment in any other currency, electronic or otherwise, including cryptocurrency and tokens such as Bitcoin, Ethereum, Litecoin, and other digital currencies or tokens.
This requirement gives Ella Cafe significant control over the customer payment methods accepted at each franchise location. It ensures uniformity across the brand and allows Ella Cafe to adapt to changing payment technologies and consumer preferences. For a prospective franchisee, this means they must be prepared to invest in the necessary equipment and systems to accommodate the payment methods Ella Cafe mandates, and they must stay updated with any changes or additions to these required payment methods. The franchisee bears the costs of these systems.