Is the Ella Cafe franchisee required to purchase operations-related programs or materials from third-party vendors, and who is responsible for the associated costs and fees?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
the Coffee House as Franchisor may designate. Franchisee must purchase and distribute all coupons, clothing, toys, and other collateral merchandise (and only the coupons, clothing, toys, and collateral merchandise) designated by Franchisor for use in connection with each such program, promotion, or offering. This may include, among other things, displaying signage or other literature containing information about the franchise offering.
- 9.9. Participation in E-Commerce. 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, franchisees are required to cooperate with Ella Cafe and actively participate in any and all social media and other e-commerce advertising programs, management programs, and other platforms Ella Cafe requires. The franchisee is responsible for paying Ella Cafe or a third-party provider the costs associated with such programs or platforms. These costs and/or fees are in addition to other advertising fees under the Franchise Agreement.
Ella Cafe franchisees must also place and pay the cost of business listings in print and online directories as Ella Cafe may require from time to time. Amounts paid for business directory listings will not be credited toward any other advertising expenditures required.
Furthermore, franchisees must purchase, use, and maintain a computer system consistent with Ella Cafe's standards and specifications and are solely responsible for the acquisition, operation, maintenance, updates, and upgrading of the computer system, including compliance with the standards that Ella Cafe periodically requires. The franchisee is also responsible for how their computer system interfaces with Ella Cafe's computer system and those of other third parties, as well as the installation, maintenance, and support of the computer system, although Ella Cafe may from time to time require or recommend third parties to provide these functions. The franchisee bears the consequences if the computer system is not properly operated, maintained, and upgraded, including virus and spyware issues.