Can Baya Bar require a franchisee to enter into software license agreements?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
o ownership or other proprietary rights to Franchisor's website and Franchisee will lose all rights to such listing of Franchisee's location upon expiration or termination of this Agreement for any reason.
- 12.3.7 In addition to the requirements of Section 6.4, Franchisee shall pay all fees, whether to Franchisor or to third party vendor(s), and expenses for technology required by this Agreement for operation of the Franchised Business, including but not limited to, the costs of computer hardware and software and applications, installation costs and regularly recurring fees for software and digital menu displays, Internet access, license fees, help desk fees, and licensing or user-based fees.
- 12.4 Safety and Security of Premises. Franchisee is solely responsible for the safety and security of the Franchised Business location for Franchisee, Franchisee's personnel, customers, agents and the general public. Any suggestions by Franchisor on such matters are for guidance only and not binding on Franchisee.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, franchisees may be required to enter into software license agreements. The FDD states that franchisees must pay all fees and expenses for technology required for the operation of the franchised business. These expenses include, but are not limited to, the costs of computer hardware and software, applications, installation costs, recurring fees for software and digital menu displays, internet access, license fees, help desk fees, and licensing or user-based fees. This indicates that franchisees may need to enter into agreements for software licenses with Baya Bar or third-party vendors.
This requirement means that prospective Baya Bar franchisees should budget not only for the initial purchase of necessary software but also for ongoing licensing and user fees. These costs can vary depending on the specific software required and the number of users. It is also important to note that Baya Bar may modify its technology requirements over time, potentially necessitating upgrades or changes to the software used in the business, which could result in additional expenses for the franchisee.
Furthermore, the franchisee is responsible for maintaining adequate hardware and software to access the internet at the speed required by Baya Bar. The franchisee must also utilize the electronic mail account provided by Baya Bar and promptly respond to all electronic mail related to the franchised business on a daily basis. These stipulations highlight the importance of technology in the Baya Bar franchise system and the franchisee's obligation to stay current with the technological demands of the business.
Therefore, a prospective Baya Bar franchisee should clarify with Baya Bar the specific software and technology requirements, including the expected costs and any potential future upgrades or changes. Understanding these obligations is crucial for assessing the overall financial investment and operational responsibilities associated with owning a Baya Bar franchise.