Who is responsible for the expense of installing and maintaining the POS system and computer hardware and software required for operating a Baya Bar franchised business?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
such understatements during the term of this Agreement may, at the option of Franchisor, be considered an incurable default and thereby subject to termination as provided herein.
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.
- 12.3.5 Franchisee shall have and maintain adequate hardware and software in order to access the Internet at the speed required by Franchisor from time to time. Franchisee shall utilize the electronic mail account provided by Franchisor. Franchisee shall promptly read and respond to all electronic mail related to the Franchised Business no less often than on a daily basis and shall accept and acknowledge receipt of all electronic mail sent by Franchisor. Franchisee shall not establish any website or other listing on the Internet except as provided and specifically permitted herein.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the franchisee is solely responsible for the expenses related to the POS system and computer hardware and software. This includes the initial installation and ongoing maintenance required for the operation of the franchised business. The franchisee must adhere to the procedures specified by Baya Bar in the manual or in writing.
Baya Bar may also require the franchisee to install and maintain systems and web-based payment processing accounts at the franchisee's own expense. These systems must allow Baya Bar to independently and electronically access and retrieve information, including gross revenue, from the franchisee's POS system and other computer systems. The franchisee is obligated to execute any documents deemed necessary by Baya Bar to facilitate this access.
Furthermore, Baya Bar retains exclusive ownership of all customer data collected or provided by the franchisee, retrieved from the POS system, or otherwise collected. Baya Bar has the right to use this data in any manner without compensating the franchisee. The franchisee is granted a license to use such data solely for operating the franchised business, which terminates upon the expiration or termination of the franchise agreement. The franchisee is also responsible for entering into software license agreements for software developed or acquired by Baya Bar for use in the system, and for maintaining adequate internet access.
In addition to these specific requirements, the franchisee is responsible for all fees and expenses related to technology required by the agreement, including the costs of computer hardware and software, installation costs, recurring fees for software and digital menu displays, internet access, license fees, help desk fees, and licensing or user-based fees. This comprehensive allocation of technology-related expenses to the franchisee is a significant financial consideration for prospective Baya Bar franchisees.