Is an Ella Cafe franchisee required to enter into software license agreements?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
- **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.
- 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).
10.1.3 Consistent with the foregoing, among other things, Franchisor reserves the right periodically to undertake technology initiatives, the purpose of which would be enhance the technology associated with the franchise system including, without limitation, enhanced internet capability, use of proprietary digital applications and enhanced support services. Although Franchisor cannot estimate the future costs of the Computer System or required service or support, and although these costs might not be fully amortizable over the remaining term of this Agreement, Franchisee agrees to incur the costs of obtaining the computer hardware and software comprising the Computer System (or additions or modifications) and required service or support. Franchisor has no obligation to reimburse Franchisee for any Computer System costs.
10.1.4 Notwithstanding the fact that Franchisee must purchase, use, and maintain the Computer System consistent with our standards and specifications, Franchisee will have sole and complete responsibility for: (1) the acquisition, operation, maintenance, updates and upgrading of the Computer System, including compliance with the standards that we periodically require; (2) the manner in which your Computer System interfaces with our computer system and those of other third parties; (3) the installation, maintenance and support of the Computer System, although Franchisor may from time to time require or recommend third parties to provide these functions; and (4) any and all consequences that may arise if the Computer System is not properly operated, maintained and upgraded, including but not limited to virus and spyware issues.
10.1.5 All of Franchisee's Computer Systems must be compliant with all applicable laws, regulations, and commonly accepted industry standards, including without limitation those laws, regulations, and commonly accepted industry standards relating to privacy, data security, and the processing and protection of confidential personal information, including without limitation the
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, franchisees may be required to enter into software license agreements. Ella Cafe may create and license social media accounts, email marketing software accounts, and other electronic accounts that use the Ella Cafe marks. Franchisees are not allowed to create their own websites, social media accounts, email marketing software accounts, or other comparable accounts outside of those licensed by Ella Cafe.
Furthermore, Ella Cafe franchisees must acquire and install all necessary hardware and/or software used in connection with non-cash payment systems. They are also responsible for the acquisition, operation, maintenance, updates, and upgrading of the computer system, including compliance with the standards that Ella Cafe periodically requires. This includes ensuring that their computer systems comply with all applicable laws, regulations, and commonly accepted industry standards, including those relating to privacy, data security, and the processing and protection of confidential personal information.
Ella Cafe also reserves the right to undertake technology initiatives to enhance the technology associated with the franchise system, including enhanced internet capability, use of proprietary digital applications, and enhanced support services. Franchisees agree to incur the costs of obtaining the computer hardware and software comprising the Computer System (or additions or modifications) and required service or support, even if these costs might not be fully amortizable over the remaining term of the Franchise Agreement. Ella Cafe has no obligation to reimburse franchisees for any Computer System costs.