Can Baya Bar require a franchisee to install systems for web-based payment processing?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
12.3 Computer Systems.
- 12.3.1 Franchisee, at Franchisee's sole expense, shall install and maintain the POS System and computer hardware and software Franchisor requires for the operation of the Franchised Business and shall follow the procedures related thereto that Franchisor specifies in the Manual or otherwise in writing.
- 12.3.2 Franchisor may require Franchisee, at Franchisee's sole expense, to install and maintain systems and web-based payment processing accounts that permit Franchisor to independently and electronically access and retrieve any information stored in Franchisee's POS System, other computer systems and web-based payment processing accounts, including, without limitation, information concerning Gross Revenue. Upon Franchisor's request, Franchisee shall execute such documents as Franchisor deems necessary to permit Franchisor to independently and electronically access and retrieve all information stored on Franchisee's POS System, other computer systems and web-based payment processing accounts.
- 12.3.3 Any and all customer data collected or provided by Franchisee, retrieved from Franchisee's POS System, or otherwise collected from Franchisee by Franchisor or provided to Franchisor, is and will be owned exclusively by Franchisor and will be considered to be Franchisor's proprietary and Confidential Information. Franchisor has the right to use such data in any manner without compensation to Franchisee. Franchisor licenses to Franchisee the use of such data solely for the purpose of operating the Franchised Business; provided that, this license shall automatically and irrevocably terminate, without any additional action or notice required by Franchisor, upon the expiration or earlier termination of this Agreement.
- 12.3.4 Franchisor may require Franchisee, at Franchisee's sole expense, to enter into software license agreements in the form that Franchisor requires for software Franchisor develops or acquires for use in the System.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar has the authority to mandate that franchisees install and maintain specific systems for web-based payment processing. These systems must allow Baya Bar to independently and electronically access and retrieve information from the franchisee's POS system, other computer systems, and web-based payment processing accounts. This includes, but is not limited to, information concerning Gross Revenue.
Furthermore, Baya Bar can require franchisees to execute documents that permit this access. The franchisee is responsible for the expense of installing and maintaining these systems. All customer data collected or provided by the franchisee, retrieved from the POS system, or otherwise collected by Baya Bar is owned exclusively by Baya Bar.
Baya Bar has the right to use this data in any manner without compensating the franchisee, licensing its use back to the franchisee solely for operating the franchised business. This license automatically terminates upon expiration or termination of the Franchise Agreement. Additionally, Baya Bar can require franchisees to enter into software license agreements for software developed or acquired for use within the Baya Bar system.