What kind of administrative procedures will Ella Cafe provide to franchisees?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
ut only to the extent permitted by applicable law).
- E. Establishing and using administrative, bookkeeping, accounting, and inventory control procedures. We will provide you our recommended procedures for administration, bookkeeping, accounting, and inventory control (Section 5.5). We may make any such procedures part of required (and not merely recommended) procedures for our system.
- F. Brand Marketing Fee. We will administer the Brand Marketing Fee (Section 5.5). We will prepare an unaudited annual financial statement of the Brand Marketing Fee within 120 days of the close of our fiscal year and will provide the financial statement to you upon request. (Section 9.4)
- G. Website. We will maintain a website for the Cool Coffee brand, which will include your business information and telephone number. (Section 7.26)
Length of Time to Open
For a Start Up Franchise, the typical length of time from the effective date of the franchise agreement to the opening of your business is 180 days. Factors that may affect the time period include your ability to obtain a lease, obtain financing, develop your location, obtain business permits and licenses, and hire employees. If you are a converting your existing similar business to Ella Coffee House franchised business, we estimate that you will be operational as a Franchised Business within 30 to 60 days after signing a Franchise Agreement. When the retail site is selected and approved by us, we will mutually agree on an "Opening Date" for your Coffee House, but the Opening Date must be no later than 365 days from the Effective Date of your Franchise Agreement.
If you execute a MUDA with us, you will be required to open a certain number of Franchised Businesses by specific dates that will be identified in a MUDA Development Schedule before you sign the MUDA.
If you are unable to open your Coffee House by the Opening Date, we are not obligated to extend your Opening Date deadline. If you have sent a written extension request to us at least 60 days prior to your Opening Date, we may in our sole discretion grant you an extension.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, Ella Cafe will provide franchisees with recommended procedures for administration, bookkeeping, accounting, and inventory control. These procedures may become required rather than just recommended for the franchise system.
Additionally, Ella Cafe will administer the Brand Marketing Fee, and prepare an unaudited annual financial statement of the Brand Marketing Fee within 120 days of the close of their fiscal year, providing the financial statement to franchisees upon request. Ella Cafe also maintains a website for the Cool Coffee brand, which includes the franchisee's business information and telephone number.
Ella Cafe also requires franchisees to purchase, install, and maintain a designated electronic point-of-sale (POS) cash register system, such as TOAST, to record sales and transaction data. Franchisees must connect the POS System to a telephone line or other communications device capable of accessing the internet. The estimated cost to purchase or lease the POS systems ranges from $2,500 to $10,000. Franchisees are also required to sign a maintenance agreement with the manufacturer of the POS system and pay the annual service fees directly to the manufacturer.