What responsibility does an Ella Cafe franchisee have regarding updates to the Computer System?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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. Although Franchisor cannot estimate the future costs of the Computer System or required service or support, and although these costs might not be fully amortizable over the remaining term of this Agreement, Franchisee agrees to incur the costs of obtaining the computer hardware and software comprising the Computer System (or additions or modifications) and required service or support. Franchisor has no obligation to reimburse Franchisee for any Computer System costs. As otherwise permitted in this Agreement, Franchisor may access the Computer System and retrieve all pertinent information relating to the operation of the Coffee House in areas that we have the ability to control and/or remedy.
- 10.1.4 Notwithstanding the fact that Franchisee must purchase, use, and maintain the Computer System consistent with our standards and specifications, Franchisee will have sole and complete responsibility for: (1) the acquisition, operation, maintenance, updates and upgrading of the Computer System, including compliance with the standards that we periodically require; (2) the manner in which your Computer System interfaces with our computer system and those of other third parties; (3) the installation, maintenance and support of the Computer System, although Franchisor may from time to time require or recommend third parties to provide these functions; and (4) any and all consequences that may arise if the Computer System is not properly operated, maintained and upgraded, including but not limited to virus and spyware issues.
- 10.1.5 All of Franchisee's Computer Systems must be compliant with all applicable laws, regulations, and commonly accepted industry standards, including without limitation those laws, regulations, and commonly accepted industry standards relating to privacy, data security, and the processing and protection of confidential personal information, including without limitation the
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 computer system used in their Ella Cafe business. While Ella Cafe may introduce technology initiatives to enhance the franchise system, the franchisee bears the costs of obtaining the computer hardware and software, including any additions or modifications, and the required service or support. Ella Cafe is not obligated to reimburse the franchisee for these costs.
The franchisee has sole responsibility for the acquisition, operation, maintenance, updates, and upgrading of the computer system, ensuring compliance with Ella Cafe's standards. This includes how the computer system interfaces with Ella Cafe's system and third-party systems. The franchisee is also responsible for the installation, maintenance, and support of the computer system, although Ella Cafe may recommend third parties for these services.
Furthermore, the franchisee is liable for any consequences arising from the improper operation, maintenance, or upgrading of the computer system, including issues like viruses and spyware. The computer systems must comply with all applicable laws, regulations, and industry standards related to privacy, data security, and the protection of confidential personal information. This means an Ella Cafe franchisee must stay current with technology and security standards at their own expense.