What is a Beauty Bungalows franchisee's obligation regarding computer problems, viruses, and attacks?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.14 Computer Problems, Viruses, and Attacks.
Franchisee acknowledges and understands that computer systems are vulnerable to computer viruses, bugs, power disruptions, communication line disruptions, Internet access failures, Internet content failures, date-related problems, and attacks by hackers and other unauthorized intruders.
Franchisor has taken reasonable steps so that these problems will not materially affect the System.
Franchisor does not guarantee that information or communication systems supplied by Franchisor or its suppliers will not be vulnerable to these problems.
Franchisee acknowledges and agrees that Franchisee is solely responsible for protecting itself from these problems.
Franchisee must also take reasonable steps to verify that Franchisee's suppliers, lenders, landlords, customers, and
governmental agencies on which Franchisee relies, are reasonably protected. This may include taking reasonable steps to secure Franchisee's systems, including, but not limited to, firewalls, access code protection, anti-virus systems, and use of backup systems.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, franchisees are primarily responsible for protecting themselves from computer-related issues. While Beauty Bungalows states it has taken reasonable steps to prevent such problems from materially affecting the system, it does not guarantee its systems will be invulnerable.
Specifically, the FDD states that Beauty Bungalows franchisees acknowledge that computer systems are susceptible to viruses, bugs, power and communication disruptions, internet failures, data-related problems, and hacker attacks. Franchisees must take reasonable steps to protect themselves and verify that their suppliers, lenders, landlords, customers, and governmental agencies they rely on are also reasonably protected.
These protective measures may include implementing firewalls, access code protection, anti-virus systems, and backup systems. This means a Beauty Bungalows franchisee needs to budget for and actively manage their own cybersecurity and data protection measures, rather than relying solely on the franchisor for protection.