Can Ella Cafe require a franchisee to replace or upgrade the POS System software and hardware?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
dentical combination and manner as the Franchisor may prescribe in writing and the Franchisee shall supply to the Franchisor samples or photographs of the same upon Franchisor's request. Franchisee shall comply with all trademark, trade name, service mark and copyright notice marking requirements and Franchisee shall supply to the Franchisor samples or photographs of the same upon our request.
ARTICLE 10. RECORDS AND REPORTS
10.1 Systems. Franchisee shall use such customer data management, sales data management, administrative, bookkeeping, accounting, and inventory control procedures and systems as Franchisor may specify in the Manual or otherwise in writing. Franchisee must acquire and use only the point of sale cash registers and computer systems and equipment that Franchisor prescribes for use by System Coffee Houses ("POS System") and adhere to Franchisor's
requirements for use. Requirements may include, among other things, connection to remote servers, off-site electronic repositories, and high speed Internet connections. 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.
- 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.
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 replace or upgrade their POS system, including both software and hardware. The franchisee is responsible for acquiring and using only the point of sale cash registers and computer systems that Ella Cafe prescribes. These requirements may include connecting to remote servers, off-site electronic repositories, and high-speed internet connections. Ella Cafe will provide 90 days advance written notice of any changes to the POS System requirements.
Ella Cafe has the discretion to require franchisees to add memory, ports, accessories, or peripheral equipment, or to implement new or substitute software to the POS system. The franchisee is also responsible for entering into maintenance agreements for the POS system and other computers. The POS system must be used solely for POS-related purposes approved by Ella Cafe. Franchisees may choose to purchase a secondary computer for routine business functions.
Furthermore, franchisees must acquire, install, and maintain anti-virus and anti-spyware software as required by Ella Cafe and implement prescribed internet user policies to protect the POS system. The franchisee is also obligated to purchase new or upgraded software programs, system documentation manuals, and other proprietary materials whenever Ella Cafe adopts such changes system-wide. The franchisee must also enter into all software license agreements and maintenance agreements in the form and manner prescribed by Ella Cafe.