For Bevaris Alliance, does 'Franchise Software' include software developed by the franchisor?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
7.10 Information technology. The Franchisee shall:
- (a) use the Franchise Software and do all such things as the Franchisor shall reasonably require (including the purchase or leasing of hardware and entering into applicable software licenses) to permit and/or facilitate the operation and use of the Franchise Software and contribute to all costs associated with the development and implementation of the Franchise Software for use in the Franchisee's Business such amount as shall in the Franchisor's reasonable opinion represent a fair contribution to such costs;
- (b) acquire, update, replace and/or make use of any software and hardware which the Franchisor shall reasonably require to be used for the Franchisee's Business in accordance with the instructions and timetable (subject to the Franchisee having not less than sixty days notification of the specification for the hardware) set by the Franchisor; and
- (c) immediately enter into or comply with such software licenses and other agreements (whether with the Franchisor or third-party suppliers) concerning the Franchise Software and other software required to enable the Franchisee to use the Franchise Software in accordance with the Manual and comply strictly with their terms.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees are required to use specific software in their business operations. This software, referred to as "Franchise Software," is central to how franchisees manage and run their Bevaris Alliance franchise. The FDD stipulates that franchisees must use the Franchise Software and adhere to the franchisor's requirements for its operation, including purchasing or leasing necessary hardware and obtaining appropriate software licenses.
Furthermore, Bevaris Alliance franchisees are obligated to contribute to the costs associated with the development and implementation of the Franchise Software. The amount of this contribution is determined by the franchisor as a fair share of the overall costs. This implies that Bevaris Alliance retains control over the development and updates of the software, ensuring it aligns with the brand's standards and operational needs.
The FDD also states that franchisees must acquire, update, and replace any software and hardware as directed by Bevaris Alliance, following the franchisor's instructions and timetable. Franchisees receive at least sixty days' notice regarding hardware specifications. Additionally, franchisees are required to enter into and comply with software licenses and agreements, whether with Bevaris Alliance or third-party suppliers, to use the Franchise Software in accordance with the operational manual. This ensures that franchisees remain compliant with the software's terms and conditions.
Based on these requirements, it can be inferred that the Franchise Software includes software developed, maintained, and updated by Bevaris Alliance. The franchisor maintains control over the software's development, requires franchisee contributions to its costs, and mandates compliance with specific software licenses, indicating that the software is proprietary and integral to the Bevaris Alliance franchise system.