factual

What responsibility does an Ella Cafe franchisee have regarding upgrading the Computer System?

Ella_Cafe Franchise · 2024 FDD

Answer from 2024 FDD Document

f 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. 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

Payment Card Industry Data Security Standards and all other standards applicable to electronic payments that may be published from time to time by payment card companies.

  • 10.2 Software. Franchisee must: (a) use any proprietary software programs, system documentation manuals, and other proprietary materials that Franchisor requires in connection with the operation of the Coffee House ; (b) input and maintain in the POS System such data and information as Franchisor prescribes in the Manual, software programs, documentation, or otherwise; and (c) purchase new or upgraded software programs, system documentation manuals, and other proprietary materials at then-current prices whenever Franchisor adopts such new or upgraded programs, manuals, and materials system-wide. Franchisee must enter into all software license agreements, "terms of use" agreements, and software and hardware maintenance agreements, in the form and manner Franchisor prescribes, and pay all fees imposed thereunder.
  • 10.3. Independent Access.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2024 FDD)

According to Ella Cafe's 2024 Franchise Disclosure Document, franchisees are responsible for the acquisition, operation, maintenance, updates, and upgrading of the Computer System, including compliance with the standards that Ella Cafe periodically requires. This includes ensuring the Computer System interfaces correctly with Ella Cafe's system and 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 functions. Franchisees bear the consequences if the Computer System is not properly operated, maintained, and upgraded, including issues like viruses and spyware. All Computer Systems must comply with applicable laws, regulations, and industry standards related to privacy, data security, and the protection of confidential personal information.

Ella Cafe reserves the right to undertake technology initiatives to enhance the franchise system's technology, such as enhanced internet capability, proprietary digital applications, and support services. Franchisees are responsible for the costs of obtaining the computer hardware and software, including any additions or modifications, as well as the required service or support. Ella Cafe has no obligation to reimburse franchisees for these Computer System costs. Ella Cafe may access the Computer System to retrieve information related to the operation of the Coffee House in areas that they have the ability to control or remedy.

Ella Cafe may require franchisees 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 Ella Cafe prescribes; and enter into maintenance agreements for the POS System and other computers. Ella Cafe will provide franchisees 90 days advance written notice of any change to the POS System requirements. Franchisees must acquire, install, and maintain anti-virus and anti-spyware software as Ella Cafe requires and pay related costs, and franchisees must adopt and implement Internet user policies to avoid, block, and eliminate viruses and other conditions designed to interfere with operation of the POS System.

In practical terms, an Ella Cafe franchisee should budget for ongoing technology expenses and be prepared to upgrade their computer systems and POS systems as required by Ella Cafe. They must also stay informed about changes to the POS System requirements, as Ella Cafe will provide 90 days' notice for any changes. Failure to maintain and upgrade the Computer System can lead to operational issues, security breaches, and non-compliance with legal and industry standards, all of which are the franchisee's responsibility.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.