Can Amorino require franchisees to license computer software from them or designated others?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
You must install any other hardware or software for the operation of the Store that we may require in the future, including any enhancements, additions, substitutions, modifications, and upgrades. There is no contractual limitation on the frequency or cost of these obligations. We may also require you to license from us, or from others we designate, any computer software we develop or acquire for use by Amorino Stores.
We shall have the right to access information stored on your computer system related to the operation of the Store, from a remote location, without the need for consent, at the times and in the manner as we shall require, in our sole discretion. Franchisor's unlimited access to the franchisees' data might increase the risk of violation of applicable privacy laws and result in the disclosure of franchisees' sensitive client/customer, employee, or company information resulting from cyber security events and/or data breaches.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 39–46)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees may be required to license computer software from Amorino or from designated third parties. Amorino can mandate the installation of specific hardware or software for store operations, including enhancements, additions, substitutions, modifications, and upgrades. There are no contractual limitations regarding the frequency or cost of these required updates.
This means that as an Amorino franchisee, you might face ongoing expenses for software licenses and system updates throughout the term of your franchise agreement. These costs are in addition to the initial investment in the POS system, computer hardware, and software, which ranges from $1,200 to $2,500. The FDD specifies that there are no annual costs for optional or required maintenance, updating, upgrading, or support contracts for the point of sale or computer systems.
Amorino also retains the right to remotely access information stored on the franchisee's computer system related to the store's operation without needing consent. While this access enables Amorino to monitor store performance and ensure compliance, the FDD acknowledges that it also increases the risk of violating privacy laws and potentially exposing sensitive client, employee, or company information due to cybersecurity events or data breaches. Prospective franchisees should carefully consider these technological requirements and data access policies, factoring in potential costs and risks associated with software licensing, system updates, and data security.