Can Ella Cafe require a franchisee to enter into maintenance agreements for the POS System and other computers?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor may, in its sole discretion, require Franchisee to add to add to the POS System memory, ports, and other accessories or peripheral equipment or additional, new, or substitute software; replace or upgrade the POS System (software and hardware) and other computers as Franchisor prescribes; and enter into maintenance agreements for the POS System and other computers. Because the POS System must be used solely for POS-related purposes that are set forth by the POS System provider and approved by Franchisor, Franchisee may elect to purchase a secondary computer for use at the Coffee House for routine business functions and related software, such as Internet browsing, word processing, spreadsheet preparation, and emailing. Franchisor will provide Franchisee 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.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, Ella Cafe may require franchisees to enter into maintenance agreements for the POS system and other computers. Specifically, Ella Cafe maintains the right to require franchisees to add memory, ports, accessories, peripheral equipment, or new software to the POS system. Ella Cafe can also mandate that franchisees replace or upgrade the POS system, including both software and hardware, as well as other computers.
While Ella Cafe can mandate these changes, the franchisee is responsible for the acquisition, operation, maintenance, updates, and upgrading of the computer system. This includes ensuring compliance with Ella Cafe's standards and managing the interface between the franchisee's computer system and Ella Cafe's system, as well as those of third parties. The franchisee is also responsible for the installation, maintenance, and support of the computer system, although Ella Cafe may recommend third parties to provide these services.
Ella Cafe will provide franchisees with 90 days' advance written notice of any changes to the POS system requirements. Franchisees must also acquire, install, and maintain anti-virus and anti-spyware software as required by Ella Cafe, and implement internet user policies to protect the POS system. Franchisees may purchase a secondary computer for routine business functions, as the POS system must be used solely for POS-related purposes set forth by the POS system provider and approved by Ella Cafe.