How many POS systems are Ella Cafe franchisees required to install and maintain?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
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Point of Sale and Computer Systems
You must purchase, install, and maintain an electronic point-of-sale cash register system to record sales and transaction data (such as item ordered, price, and date of sale) that we designate. Currently, TOAST is the only approved point-of-sale system ("POS System") required to operate your Ella Coffee House; however, we reserve the right to change the POS System to any other POS System that we may designate and communicate the same to you via the Operations Manual. 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. You must install and maintain between two and four POS Systems (depending on the size of your Coffee House). The computer system and/or POS for your Franchised Business will be dedicated for the operation of your Ella Coffee House business and used for no other purpose.
You must connect the POS System to a telephone line or other communications device, such as a computer, which is capable of accessing the internet via a third-party network. We anticipate this will cost you $2,500 to $10,000 to purchase or lease the systems. You must sign a maintenance agreement with the manufacturer of the POS system and your computer system that we designate and pay the annual service fees to the manufacturer directly. We estimate that your annual
maintenance will range from $4,800 to $7,200. Neither we, our affiliates, nor any third parties are required to provide on-going maintenance, repairs, upgrade, or updates to your computer system.
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, franchisees must purchase, install, and maintain an electronic point-of-sale (POS) cash register system to record sales and transaction data. Currently, TOAST is the only approved POS system required to operate an Ella Cafe. However, Ella Cafe reserves the right to change the POS system to any other POS system that they may designate and communicate to the franchisee via the Operations Manual.
Ella Cafe franchisees are required to install and maintain between two and four POS systems, depending on the size of their coffee house. 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. The computer system and/or POS for the franchised business will be dedicated to the operation of the Ella Cafe business and used for no other purpose.
The FDD states that franchisees must connect the POS System to a telephone line or other communications device, such as a computer, which is capable of accessing the internet via a third-party network. Ella Cafe estimates that it will cost franchisees between $2,500 to $10,000 to purchase or lease the systems. Franchisees must sign a maintenance agreement with the manufacturer of the POS system and their computer system that Ella Cafe designates and pay the annual service fees to the manufacturer directly. Ella Cafe estimates that the annual maintenance will range from $4,800 to $7,200. Neither Ella Cafe, its affiliates, nor any third parties are required to provide on-going maintenance, repairs, upgrades, or updates to the computer system.