Are the POS systems for Azal Coffee proprietary property of the franchisor?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
pect to franchise technology.
The franchise technology that we currently specify for establishing an Azal Coffee includes a point-of-sale and order management system (the "POS system"), specified computer equipment and software (the "computer system"). We do not currently have a mobile application. The POS system for an Azal Coffee includes the following hardware and software: a terminal base system; cash drawer, printer, sticky label printer, barcode scanner, and POS system software and API access specified by us. The specified computer equipment and software will be used in your business to record sales transactions, including providing a break-down of credit card, check and cash sales, discounts, products sold, etc., be the method of delivering the order to the production line, be used for receipts of transactions, be used to manage gift card and loyalty programs, and be used to provide sales data to our home office. We estimate that the initial cost for the POS system operating with one terminal is approximately $4,000 to $6,000. The POS systems must be acquired from a Designated Supplier. The POS systems are not our proprietary property. We reserve the right to change POS systems in our discretion. We do not have an obligation to
maintain, update, upgrade, or support the hardware or software and we reserve the right to require that you enter into a maintenance agreement with a Designated Supplier.
We, our affiliates, or a supplier approved by us may charge additional monthly fees related to the POS Systems and other software and technology we require you to use. You will pay these amounts to us or one of our affiliates, who will then distribute those funds as appropriate, including to applicable third-party vendors.
We will have the right to independently access the sales and other data generated or stored by technology used in our franchise system, including your POS systems. There are no contractual limitations on our right to access the information and data.
You must maintain high-speed Internet access at all times in the manner specified by us for communication with us, use of franchise technology, and to allow us to access information from franchise technology. Our rights to use franchise technology data includes the right to deliver the data to any third party we deem appropriate in our sole discretion; provided that the identity and other personal information of your employees, agents, and customers
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the POS systems used by franchisees are not the proprietary property of Azal Coffee. The FDD specifies that franchisees must acquire the POS systems from a Designated Supplier.
The POS system includes hardware and software components such as a terminal base system, cash drawer, printer, sticky label printer, barcode scanner, and POS system software and API access. The estimated initial cost for the POS system with one terminal ranges from approximately $4,000 to $6,000. Azal Coffee retains the right to change the POS systems at its discretion and does not have an obligation to maintain, update, upgrade, or support the hardware or software, potentially requiring franchisees to enter into a maintenance agreement with a Designated Supplier.
Azal Coffee, its affiliates, or an approved supplier may charge additional monthly fees related to the POS Systems and other required software and technology. Franchisees are obligated to pay these fees, which may be distributed to third-party vendors. Azal Coffee has the right to independently access sales and other data generated or stored by the technology used in the franchise system, including the POS systems, without contractual limitations. Franchisees must maintain high-speed Internet access to facilitate communication, use of franchise technology, and franchisor access to data. Azal Coffee can deliver this data to any third party at its discretion, provided that personal information of employees, agents, and customers is not improperly disclosed.