factual

Can an Ella Cafe franchisee use a supplemental or secondary POS system?

Ella_Cafe Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 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.

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.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2024 FDD)

According to Ella Cafe's 2024 Franchise Disclosure Document, franchisees are generally prohibited from using supplemental or secondary POS systems for processing sales. All sales must be processed through the approved POS systems, and these systems are dedicated to the operation of the Ella Coffee House business. However, franchisees may purchase a secondary computer for routine business functions unrelated to POS activities.

Ella Cafe requires franchisees to use specific customer data management, sales data management, administrative, bookkeeping, accounting, and inventory control procedures and systems as specified in the manual or in writing. Franchisees must only use the point of sale cash registers and computer systems and equipment that Ella Cafe prescribes for use by System Coffee Houses. These requirements may include connection to remote servers, off-site electronic repositories, and high-speed Internet connections.

Ella Cafe may require franchisees 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 Ella Cafe prescribes; and enter into maintenance agreements for the POS System and other computers. Ella Cafe will provide franchisees 90 days advance written notice of any change to the POS System requirements.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.