What is the Better Blend Franchisee's obligation regarding System Standards related to Technology?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
employees. If a training program is held at a location which requires travel by the Principal Executive or any other employee, then Franchisee shall pay all travel, living and other expenses.
- 7.7 Technology. Without limiting the generality of Section 7.1 or Section 8.1, Franchisee shall acquire and use all Technology required by BBF. BBF has the right to prohibit Franchisee from using any Technology which is not approved or required by BBF. Franchisee shall enter into any subscription and support agreements related to the Technology that BBF may require. Franchisee shall upgrade, update, or replace any Technology from time to time as BBF may require. Franchisee shall protect the confidentiality and security of all Technology, and Franchisee shall abide by any System Standards related thereto. Franchisee shall give BBF unlimited access to Franchisee's Technology used in the Business, by any means designated by BBF. Despite Franchisee's obligation to acquire and use Technology according to System Standards, Franchisee has sole and complete responsibility for: (a) acquiring, operating, maintaining, and upgrading Franchisee's Technology; (b) the manner in which Franchisee's Technology interfaces with BBF's and any third party's computer system; (c) any and all consequences if Franchisee's Technology is not properly operated, maintained, and upgraded; (d) complying at all times with the most current version of the Payment Card Industry Data Security Standards, and (e) complying at all times with all laws governing the use, disclosure, and protection of Privacy Information.
- 7.8 Customer Complaints. Franchisee shall use its best efforts to promptly resolve any customer complaints. BBF may take any action it deems appropriate to resolve a customer complaint regarding the Business, and BBF may require Franchisee to reimburse BBF for any expenses.
- 7.9 Evaluation and Compliance Programs. Franchisee shall participate at its own expense in programs required from time to time by BBF for obtaining customer evaluations, reviewing Franchisee's compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey programs, and mystery shopping. BBF shall share with Franchisee the results of these programs, as they pertain to the Business. Franchisee must meet or exceed any minimum score requirements set by BBF for such programs. BBF may set minimum scores that Franchisee must receive from the public on internet review sites (such as Yelp or Google).
- 7.10 Payment Systems. Franchisee shall accept payment from customers in any form or manner designated by BBF (which may include, for example, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems). Franchisee shall purchase or lease all equipment and enter into all business relationships necessary to accept payments as required by BBF.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees must acquire and use all technology required by Better Blend Franchising (BBF). BBF retains the right to prohibit franchisees from using any technology not approved or required by them. Franchisees are obligated to enter into any subscription and support agreements related to the technology that BBF may require. They must also upgrade, update, or replace any technology as BBF may require from time to time.
Better Blend franchisees are responsible for protecting the confidentiality and security of all technology and must abide by any system standards related to it. BBF is granted unlimited access to the franchisee's technology used in the business, through any means designated by BBF. Despite these obligations, the franchisee has sole responsibility for acquiring, operating, maintaining, and upgrading their technology.
This includes how the franchisee's technology interfaces with BBF's and any third party's computer system, and any consequences if the franchisee's technology is not properly operated, maintained, and upgraded. Franchisees must also comply with the Payment Card Industry Data Security Standards and all laws governing the use, disclosure, and protection of privacy information. The FDD defines "Technology" as point-of-sale systems, back-office systems, information management systems, customer-facing software, and other software, computers, computer peripheral equipment, cash registers, smartphones, tablets and similar equipment, communications systems (including email, audio, and video systems); backup and archiving systems; payment acceptance systems (including credit and debit card systems, check verification services, and other payment systems, as well as any compliance programs relating to those systems), and internet access, as well as upgrades, supplements, and modifications to any Technology.
In essence, while Better Blend mandates the technology franchisees must use and sets the standards, the franchisee bears the responsibility for the technology's functionality, maintenance, and legal compliance. This arrangement is fairly typical in franchising, where the franchisor seeks to maintain system-wide consistency while the franchisee manages the day-to-day operations and associated costs.