Must a Bevaris Alliance franchisee use software and hardware that the Franchisor reasonably requires?
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 and hardware that the franchisor reasonably requires for their business operations. This includes purchasing or leasing hardware and obtaining necessary software licenses to operate the Franchise Software. Franchisees must also contribute to the costs associated with the development and implementation of the Franchise Software, with the amount determined by Bevaris Alliance as a fair contribution.
Bevaris Alliance franchisees must acquire, update, or replace any software and hardware that the franchisor reasonably requires. The franchisor will provide instructions and a timetable for these updates, giving franchisees at least 60 days' notice of the hardware specifications. Franchisees are also obligated to enter into and comply with software licenses and other agreements related to the Franchise Software, adhering strictly to their terms.
This requirement ensures that all Bevaris Alliance franchises operate on a standardized technology platform, which can help maintain brand consistency and facilitate efficient communication and data management across the franchise system. However, it also means that franchisees must be prepared to invest in the technology specified by the franchisor and keep it updated as required. This could involve ongoing costs for software licenses, hardware upgrades, and related maintenance. Prospective franchisees should factor these technology-related expenses into their overall investment and operating budget.