Are All Team franchisees responsible for the expense of upgrading or purchasing new computer hardware and software?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
N. Computer Hardware and Software Requirements. FRANCHISEE shall equip the office with office equipment, and computer equipment and use the computer software as required in the Confidential Operations Manual and which may be changed or modified from time to time. FRANCHISEE must lease and maintain the required proprietary software from the supplier approved by ATFC. Currently FRANCHISEE must obtain the right to use the Software from ATFC and this Software will be hosted on ATFC's servers. FRANCHISEE acknowledges and understands that in the future, and from time to time, FRANCHISEE may be required to upgrade or purchase or lease new computer hardware and software at FRANCHISEE's expense.
FRANCHISEE understands and agrees that due to changes in competitive circumstances, presently unforeseen changes in the needs of customers, and/or presently unforeseen technological innovations, the Systems may need to undergo changes in order that it best serve the interests of the FRANCHISEE, ATFC and the franchise system. Accordingly, the FRANCHISEE expressly understands and agrees that ATFC may from time to time change the components of the Systems, including, but not limited to, altering the computer system including software and hardware, services, methods, standards, form, policies and procedures of the Systems; adding to, deleting from, or modifying those products and services which the Agency is authorized to offer; and, changing, improving or modifying the Marks and making changes to the Manual. Such changes may be sent to FRANCHISEE by supplemental bulletins, notices or by e-mail (the "Supplements"), all of which are a part of the Manual. Subject to the other provisions of this Agreement, FRANCHISEE expressly agrees to abide by any such modifications, changes, additions, deletions and alterations and acknowledge that such modifications, changes, additions, deletions and alterations will require further expenditures by FRANCHISEE. Further, FRANCHISEE agrees to execute any and all documents necessary to effectuate changes including but not limited to computer purchase and leases and software license agreements and maintenance agreements.
ATFC hereby grants to FRANCHISEE a nonexclusive, nontransferable, nonassignable and non sublicensable license to, use the proprietary computer software program licensed or such other software as ATFC may designate, including any modifications, additions or enhancements to such software ("Software") during the term of this Agreement and subject to the limitations on use and other requirements set forth in this Section VII.F.
In such event, FRANCHISEE may be required to change the licensed software FRANCHISEE uses, FRANCHISEE will do so at FRANCHISEE's sole cost and expense and may be required to sign new documentation to license the right to use the new software.
ATFC may require FRANCHISEE to modify, enhance and/or replace all or any part of the Software at any time and at FRANCHISEE's sole expense.
FRANCHISEE shall bear all costs of licensing, installation, operation, maintenance, and upgrading the Software.
FRANCHISEE shall pay ATFC a weekly Technology Fee by noon each Wednesday of $100 ("Technology Fee").
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are generally responsible for the costs associated with computer hardware and software. The FDD states that franchisees may be required to upgrade, purchase, or lease new computer hardware and software at their own expense in the future. This requirement is tied to the need for the All Team system to adapt to changes in competitive circumstances, customer needs, and technological innovations. All Team may modify its systems, including software and hardware, and franchisees must comply with these changes, which may require further expenditures.
All Team also grants franchisees a nonexclusive license to use its proprietary computer software, but All Team has the right to change this software at any time. If the software changes, franchisees may be required to adopt the new software at their own cost and sign new licensing agreements. Furthermore, All Team may require franchisees to modify, enhance, or replace the software at the franchisee's sole expense. Franchisees are also responsible for the costs of licensing, installation, operation, maintenance, and upgrading the software, and they pay a weekly Technology Fee to All Team, which covers items like remote access, licenses, system support, and software maintenance.
These stipulations mean that prospective All Team franchisees should anticipate ongoing technology-related expenses. It is important to budget for potential hardware and software upgrades, as these are not covered by the franchisor and can occur periodically. Franchisees should also be aware that All Team has the right to increase the Technology Fee annually, which would further add to the cost of maintaining the required technology infrastructure. While All Team agrees to impose such requirements and changes in a reasonable, non-discriminatory manner among other franchisees, the financial burden of these changes ultimately falls on the franchisee.