Who bears the expense of installing Required Software and its updates for Beggars Pizza franchises?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
8.4 Computer System and Required Software.
- 8.4.1 Franchisor may specify or require that certain brands, types, makes, and/or models of communications, computer systems, and hardware be used by Franchisee including, without limitation, (a) back office and point of sale systems, data, audio, and video, systems for use at the Restaurant, (b) printers and other peripheral hardware or devices, (c) archival back-up systems, (d) Internet access mode and speed, and (e) physical, electronic, and other security systems (collectively, the "Computer System").
- 8.4.2 Franchisor will have the right, but not the obligation, to develop, have developed for it, or designate (a) computer software programs that Franchisee must use in connection with the Computer System (the "Required Software") that Franchisee must install at Franchisee's expense, (b) updates, supplements, modifications, or enhancements to the Required Software that Franchisee must install at Franchisee's expense, (c) the tangible media upon which Franchisee will record data, and (d) the database file structure of the Computer System.
- 8.4.3 At Franchisor's request, Franchisee must purchase or lease, and thereafter maintain, the Computer System and, if applicable, the Required Software. Franchisor may remotely retrieve and use such data and information from Franchisee's Computer System or Required Software that Franchisor deems necessary or desirable at any time. Franchisee expressly agrees to strictly comply with Franchisor's standards and specifications for all items associated with Franchisee's Computer System and any Required Software in accordance with Franchisor's standards and specifications. Franchisee must keep the Computer System in good maintenance and repair and install such additions, changes, modifications, substitutions, and/or replacements to the Computer System or Required Software as Franchisor directs from time to time in writing. Franchisee's compliance with this Section 8.4 will be at Franchisee's sole cost and expense.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the franchisee is responsible for the expenses associated with installing required software and its updates. Beggars Pizza may specify certain computer systems and hardware that franchisees must use, including back office and point-of-sale systems.
The franchisee is obligated to install the Required Software at their own expense, as well as any updates, supplements, modifications, or enhancements to that software. Franchisees must also purchase or lease and maintain the computer system and required software at their own cost, if Beggars Pizza requests it. Beggars Pizza has the right to remotely retrieve and use data from the franchisee's computer system or required software.
Furthermore, the franchisee must comply with Beggars Pizza's standards and specifications for all items associated with the computer system and any required software. The franchisee is also responsible for keeping the computer system in good maintenance and repair and for installing any additions, changes, modifications, substitutions, and/or replacements to the computer system or required software as directed by Beggars Pizza. Compliance with these requirements is at the franchisee's sole cost and expense.