If Aplus develops proprietary software, will franchisees be required to enter into a license agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
or shall have the right to release financial and operational information relating to the Franchised Business to Franchisor's lenders or prospective lenders. Franchisee shall certify as true and correct all reports to be submitted pursuant to this Agreement. If Franchisee fails to submit any required reports under this Agreement within three (3) business days of the due date, a late reporting fee of $250 per report per incident applies, which is payable to Franchisor upon demand.
12.5. Software and Technology
During the term of this Agreement, Franchisor reserves the right to require Franchisee to purchase, install and use computer equipment consisting of hardware and software in accordance with Franchisor's
then-current specifications. This may include a business management and accounting software providing customer relationship management, scheduling, inventory, and data management services. Franchisor may change the software or technology that Franchisee must use at any time, and pass through costs to the Franchisee plus a reasonable administrative fee for use of the software and technology. Franchisor may also develop proprietary software or technology that must be used by franchisees as required. If this occurs, Franchisee agrees to enter into a license agreement with Franchisor (or an affiliate of Franchisor) and pay Franchisor (or Franchisor's affiliate) commercially reasonable licensing, support and maintenance fees. The terms of the license agreement will govern the terms pursuant to which Franchisee may utilize this software or technology. Franchisor also reserves the right to enter into a master software or technology license agreement with a third party licensor and then sublicense the software or technology to Franchisee, in which case Franchisor may charge Franchisee for all amounts that we must pay to the licensor based on Franchisee's use of the software or technology plus a reasonable administrative fee.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus reserves the right to require franchisees to purchase, install, and use specific computer equipment, including both hardware and software, that aligns with the company's current specifications. This may include business management and accounting software that provides customer relationship management, scheduling, inventory, and data management services. Aplus can modify the required software or technology at any time and pass the costs, along with a reasonable administrative fee, to the franchisee.
If Aplus develops proprietary software or technology, franchisees are required to use it as mandated by Aplus. In such cases, franchisees must enter into a license agreement with Aplus (or an affiliate) and pay commercially reasonable licensing, support, and maintenance fees. The terms of this license agreement will dictate how the franchisee can use the software or technology. Alternatively, Aplus can enter into a master software license agreement with a third-party licensor and sublicense the software to the franchisee. In this scenario, Aplus may charge the franchisee the amounts Aplus pays to the licensor, plus a reasonable administrative fee.
Aplus retains full access to the franchisee's computer, data, and systems, along with all related information, through direct access, whether in person, by telephone, modem, or internet. This access allows Aplus to verify the franchisee's compliance with their obligations under the Franchise Agreement. All fees related to software and technology are due by 5:00 PM CST on the specified day of each month.