Must all sales be processed through the approved POS systems for an Ella Cafe?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
nchisee 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. 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, all sales must be processed through the approved Point of Sale (POS) systems. The POS system must be dedicated to the Ella Cafe business and not used for any other purpose. Franchisees are not allowed to use any supplemental or secondary POS systems.
Ella Cafe retains the right to periodically introduce technology initiatives to enhance the franchise system's technology, including improvements to internet capabilities, proprietary digital applications, and support services. Franchisees are responsible for the costs associated with acquiring the computer hardware and software, as well as any required service or support, even if these costs are not fully recoverable over the remaining term of the agreement. Ella Cafe is not obligated to reimburse franchisees for these expenses.
While franchisees must purchase, use, and maintain the computer system according to Ella Cafe's standards, they are solely responsible for its acquisition, operation, maintenance, updates, and upgrades. This includes ensuring the system interfaces correctly with Ella Cafe's and third-party systems, as well as managing the installation, maintenance, and support of the system. Franchisees are also liable for any consequences arising from the improper operation, maintenance, or upgrading of the computer system, including issues related to viruses and spyware.
Ella Cafe may require franchisees to add memory, ports, accessories, or new software to the POS system, as well as replace or upgrade the system's hardware and software. Franchisees must also 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. Ella Cafe will provide 90 days advance written notice of any changes to the POS system requirements. Franchisees must 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.