Can the 1-800-GOT-JUNK? franchisor charge a fee for proprietary software and computer maintenance?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee shall have sole and complete responsibility for: (i) the acquisition, operation, maintenance and upgrading of the Computer Systems; (ii) the manner in which Franchisee’s Computer Systems interface with Franchisor’s computer system and those of third parties; and (iii) any and all consequences that may arise if the Computer Systems are not properly operated, maintained and upgraded. Franchisee acknowledges and agrees that Franchisor may have full and complete access to the information and data entered into or produced by the Computer Systems, including, without limitation, email communications and related data, and Franchisor can use the same in any way Franchisor deems appropriate, including in connection with the development, training, or modification of artificial intelligence / machine learning models, subject to applicable law. 14.9 Other Systems and Software. Franchisee shall establish and operate, at its own expense, such customer relationship management, order processing, point of sale, bookkeeping, accounting, record keeping, security, computer, communications and other systems and software as prescribed by Franchisor from time to time. Franchisee shall pay all fees charged by Franchisor, its Affiliates or designated suppliers for the use of such systems and software and to purchase or lease all necessary Computer Systems.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, franchisees are responsible for the acquisition, operation, maintenance, and upgrading of their own computer systems. This includes ensuring that these systems properly interface with 1-800-GOT-JUNK?'s computer system, and bearing the consequences if the systems are not properly maintained or upgraded.
1-800-GOT-JUNK? may prescribe certain customer relationship management, order processing, point of sale, bookkeeping, accounting, record keeping, security, computer, communications and other systems and software that franchisees must use. Franchisees are obligated to pay all fees charged by 1-800-GOT-JUNK?, its affiliates, or designated suppliers for the use of these systems and software, as well as for the purchase or lease of necessary computer systems. If 1-800-GOT-JUNK? adopts new systems or software for its franchisees or the system in general, franchisees must purchase and utilize these systems, and pay the associated fees.
This means that while franchisees are responsible for maintaining their computer systems, 1-800-GOT-JUNK? has the authority to mandate specific software and systems. The franchisee is then responsible for the costs associated with the software including any fees charged by 1-800-GOT-JUNK? or their designated suppliers. Franchisees must use only the systems and software prescribed by 1-800-GOT-JUNK? and are prohibited from using any other systems or software in operating the franchised business.