What is the maximum amount Ella Cafe can charge for the Technology Fee per month?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
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- (iii) All amounts due and owing (unless such amount is subject to a bona fide dispute) pursuant to Franchisee's agreements and contracts with all Designated Suppliers and Franchisee's other trade creditors and Franchisee's landlord.
- 4.4. Technology Fee. The parties acknowledge and agree that the technological environment is rapidly changing and that it is difficult to anticipate the cost of developing, acquiring, implementing, and licensing Internet and communications technologies that may benefit franchisees of the System. Accordingly, in addition to the Royalty Fee, Franchisor reserves the right to impose a Technology Fee up to $500 per month ("Technology Fee"). Franchisor shall indicate the amount of the current Technology Fee in its Manual or other written communication. Franchisor reserves the right to enter into a master license agreement with any software or technology supplier and sublicense the software
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the company reserves the right to impose a Technology Fee on franchisees. This fee is intended to cover the costs associated with developing, acquiring, implementing, and licensing internet and communication technologies that may benefit the Ella Cafe franchise system.
The maximum amount that Ella Cafe can charge for the Technology Fee is $500 per month. The exact amount of the current Technology Fee will be specified in the Ella Cafe Manual or other written communication provided to the franchisee.
In addition to the Technology Fee, Ella Cafe also reserves the right to require franchisees to use specific software, for which subscription fees may need to be paid directly to the software service provider. This means that franchisees could potentially face additional technology-related expenses beyond the stated Technology Fee. Prospective franchisees should inquire about what specific software is required and the associated costs.