What is the Ella Cafe franchisee required to do regarding software and related systems?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
dentical combination and manner as the Franchisor may prescribe in writing and the Franchisee shall supply to the Franchisor samples or photographs of the same upon Franchisor's request. Franchisee shall comply with all trademark, trade name, service mark and copyright notice marking requirements and Franchisee shall supply to the Franchisor samples or photographs of the same upon our request.
ARTICLE 10. RECORDS AND REPORTS
10.1 Systems. Franchisee shall use such customer data management, sales data management, administrative, bookkeeping, accounting, and inventory control procedures and systems as Franchisor may specify in the Manual or otherwise in writing. Franchisee must acquire and use only the point of sale cash registers and computer systems and equipment that Franchisor prescribes for use by System Coffee Houses ("POS System") and adhere to Franchisor's
requirements for use. Requirements may include, among other things, connection to remote servers, off-site electronic repositories, and high speed Internet connections. Franchisor may, in its sole discretion, require Franchisee to add to add to the POS System memory, ports, and other accessories or peripheral equipment or additional, new, or substitute software; replace or upgrade the POS System (software and hardware) and other computers as Franchisor prescribes; and enter into maintenance agreements for the POS System and other computers. Because the POS System must be used solely for POS-related purposes that are set forth by the POS System provider and approved by Franchisor, Franchisee may elect to purchase a secondary computer for use at the Coffee House for routine business functions and related software, such as Internet browsing, word processing, spreadsheet preparation, and emailing. Franchisor will provide Franchisee 90 days advance written notice of any change to the POS System requirements. Franchisee must acquire, install, and maintain such anti-virus and anti-spyware software as Franchisor requires and pay related costs, and Franchisee must adopt and implement such Internet user policies as Franchisor may prescribe for purposes of avoiding, blocking, and eliminating viruses and other conditions designed to interfere with operation of the POS System.
- 10.1.1 The computer system and/or POS for your Ella Coffee House will be dedicated for the operation of your Ella Coffee House business and used for no other purpose.
- 10.1.2 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.
- 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. As otherwise permitted in this Agreement, Franchisor may access the Computer System and retrieve all pertinent information relating to the operation of the Coffee House in areas that we have the ability to control and/or remedy.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, franchisees must adhere to specific requirements regarding software and related systems. Ella Cafe franchisees are obligated to use designated customer data management, sales data management, administrative, bookkeeping, accounting, and inventory control procedures and systems as specified in the manual or in writing. They must exclusively use the point of sale cash registers and computer systems and equipment that Ella Cafe prescribes for use by System Coffee Houses, also known as the POS System.
These requirements may include connecting to remote servers, off-site electronic repositories, and high-speed Internet connections. Ella Cafe retains the discretion to require franchisees to add memory, ports, accessories, peripheral equipment, or additional, new, or substitute software to the POS System, as well as replace or upgrade the POS System's software and hardware. The computer system and/or POS for the Ella Coffee House must be dedicated to the operation of the Ella Coffee House business and used for no other purpose. 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.
Ella Cafe also reserves the right to periodically undertake technology initiatives to enhance the technology associated with the franchise system, including enhanced internet capability, proprietary digital applications, and enhanced support services. Franchisees are responsible for the costs of obtaining the computer hardware and software, including any additions or modifications, and required service or support, without any obligation for reimbursement from Ella Cafe. Franchisees have sole responsibility for the acquisition, operation, maintenance, updates, and upgrading of the Computer System, ensuring compliance with Ella Cafe's standards, the way the Computer System interfaces with Ella Cafe's computer system and those of third parties, and the installation, maintenance, and support of the Computer System. Franchisees must also ensure that all Computer Systems comply with applicable laws, regulations, and industry standards related to privacy, data security, and the processing and protection of confidential personal information.