Who pays the costs associated with the Ella Cafe online ordering program?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
the Coffee House as Franchisor may designate. Franchisee must purchase and distribute all coupons, clothing, toys, and other collateral merchandise (and only the coupons, clothing, toys, and collateral merchandise) designated by Franchisor for use in connection with each such program, promotion, or offering. This may include, among other things, displaying signage or other literature containing information about the franchise offering.
- 9.9. Participation in E-Commerce. Franchisee must at all times cooperate with Franchisor and actively participate in any and all social media and other e-commerce advertising programs, management programs, and other platforms Franchisor requires and pay Franchisor or a third-party provider the costs associated with such programs or platforms. The costs and/or fees associated with these programs are in addition to other advertising fees under this Agreement.
- 9.10. Business Directory Listings. Franchisee must place and pay the cost of business listings in such print and online directories and categories, whether electronic or hard copy, as Franchisor may require from time to time. Amounts paid for business directory listings will not be credited toward any of the expenditures required by this Section 9.
- **9.11.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the franchisee is responsible for the costs associated with the online ordering program. Specifically, the franchisee must cooperate with Ella Cafe and actively participate in any e-commerce advertising programs, management programs, and other platforms that Ella Cafe requires. The franchisee is also responsible for paying Ella Cafe or a third-party provider for the costs associated with these programs or platforms. These costs and fees are in addition to any other advertising fees outlined in the Franchise Agreement.
This means that as an Ella Cafe franchisee, you will need to budget for ongoing expenses related to maintaining an online presence and participating in e-commerce initiatives. These costs could include fees for using specific online ordering platforms, charges for social media advertising, or expenses related to managing online customer interactions. It is important to factor these costs into your overall financial projections and understand that they are separate from any initial franchise fees or ongoing royalty payments.
Furthermore, the FDD states that franchisees must accept debit cards, credit cards, stored value cards, or other non-cash payment systems and methods that Ella Cafe specifies. Franchisees are also responsible for acquiring and installing all necessary hardware and/or software used in connection with these non-cash payment systems and must pay the costs associated with them. This indicates that franchisees bear the financial burden of implementing and maintaining the technology required for various payment processing methods, including those used in online ordering systems.
In addition to the costs directly related to online ordering and e-commerce, Ella Cafe franchisees are also required to place and pay for business listings in print and online directories as required by Ella Cafe. These amounts paid for business directory listings will not be credited toward any other advertising expenditures required by the agreement. This further emphasizes the franchisee's responsibility for covering various marketing and advertising expenses, including those related to online visibility and customer acquisition.