What kind of agreements must the Ella Cafe Franchisee enter into regarding software?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
nchisee 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.
- 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
Payment Card Industry Data Security Standards and all other standards applicable to electronic payments that may be published from time to time by payment card companies.
- 10.2 Software. Franchisee must: (a) use any proprietary software programs, system documentation manuals, and other proprietary materials that Franchisor requires in connection with the operation of the Coffee House ; (b) input and maintain in the POS System such data and information as Franchisor prescribes in the Manual, software programs, documentation, or otherwise; and (c) purchase new or upgraded software programs, system documentation manuals, and other proprietary materials at then-current prices whenever Franchisor adopts such new or upgraded programs, manuals, and materials system-wide.
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 use a specific computer system and POS (Point of Sale) system exclusively for their Ella Cafe business. All sales must be processed through the approved POS systems, and no other supplemental or secondary POS system is allowed. Ella Cafe reserves the right to implement technology initiatives to enhance the franchise system's technology, including improvements to internet capabilities, proprietary digital applications, and support services. Franchisees are responsible for the costs associated with obtaining the computer hardware, software, and required service or support, even if these costs cannot be fully amortized over the remaining term of the agreement, and Ella Cafe has no obligation to reimburse these costs.
Franchisees are solely responsible for the acquisition, operation, maintenance, updates, and upgrades of the computer system, ensuring compliance with Ella Cafe's standards. This includes how the computer system interfaces with Ella Cafe's systems and those of third parties, as well as the installation, maintenance, and support of the system. Franchisees bear the consequences of any issues arising from improper operation, maintenance, or upgrades, including virus and spyware problems. The computer systems must comply with all applicable laws, regulations, and industry standards related to privacy, data security, and the protection of confidential personal information.
Ella Cafe may create and license social media accounts, email marketing software accounts, and other electronic accounts that use Ella Cafe's trademarks for the franchisee's use in operating the franchised business. Franchisees are not allowed to create their own websites, social media accounts, email marketing software accounts, or similar accounts outside of those licensed by Ella Cafe. Franchisees must also cooperate with Ella Cafe and actively participate in any social media and e-commerce advertising programs, management programs, and other platforms required by Ella Cafe, and they must pay the costs associated with these programs or platforms to Ella Cafe or a third-party provider. These costs are in addition to other advertising fees under the agreement.