Does Best In Class Education Center have liability for Third-Party Technology not functioning properly?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
You understand and agree that we and our affiliates: (i) do not own certain Technology Systems (or components thereof) you must use to operate your Center (i.e., Third-Party Technology); and (ii) have no liability to you for any losses, damages or expenses you incur as result of Third-Party Technology not functioning properly.
Accordingly, you hereby: (i) waive any and all Claims against us or our affiliates relating to Third-Party Technology; and (ii) acknowledge your sole recourse for any liabilities, losses, damages or expenses you incur due to improperly functioning Third-Party Technology shall be against the owner or licensor of such Third-Party Technology.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 FDD, Best In Class Education Center does not assume liability for issues arising from Third-Party Technology. The franchisee acknowledges that certain technology systems necessary for operating the center are owned by third parties, not Best In Class Education Center or its affiliates.
This means that if a franchisee experiences losses, damages, or expenses due to Third-Party Technology malfunctioning, Best In Class Education Center is not responsible. The franchisee's sole recourse is to seek compensation from the owner or licensor of the specific Third-Party Technology that caused the issue. The franchisee waives any claims against Best In Class Education Center or its affiliates related to this technology.
This arrangement necessitates that franchisees carefully review the terms and conditions of any Third-Party Technology they are required to use. It also highlights the importance of cyber and business interruption insurance to mitigate potential losses from technology disruptions. Franchisees bear the responsibility for ensuring these systems function correctly and for securing appropriate remedies directly from the third-party providers in case of failure.