Can Franchisor poll Franchisee's POS system for Big Apple Bagels?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that his POS System will be polled by Franchisor to verify Gross Revenues.
Franchisor may access Franchisee's POS System by electronic means, including remote access, modem, the cloud, or any other Internet-based technology available to Franchisor, without Franchisee's knowledge or consent.
Franchisor reserves the right to download sales, other data and communications from Franchisee's POS System.
Franchisor shall also have the right to obtain other sales data, in order to gather sales trend data, product mix information, or any other purpose Franchisor in its sole discretion deems appropriate.
Franchisee must afford Franchisor unimpeded access to Franchisee's POS System as Franchisor may request, in the manner, form, and at the times requested by Franchisor.
Franchisor (and its accountant and/or other designee) shall have the right to make extracts from the copies of all such documents and information.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels FDD, the franchisor has the right to poll the franchisee's Point of Sale (POS) system to verify gross revenues. This means Big Apple Bagels can remotely access the franchisee's POS system to check sales data.
The FDD states that Big Apple Bagels may access the POS system by electronic means, including remote access, modem, the cloud, or any other Internet-based technology available to them, without the franchisee's knowledge or consent. The franchisor also reserves the right to download sales and other data from the POS system and obtain other sales data to gather sales trend data and product mix information, or for any other purpose they deem appropriate.
This clause in the franchise agreement requires the franchisee to provide unimpeded access to their POS system as requested by Big Apple Bagels, including the manner, form, and times of access. The franchisor also has the right to make extracts from copies of all documents and information. For a prospective franchisee, this means that Big Apple Bagels will have continuous oversight of sales data and can monitor the financial performance of the franchise. The franchisee must ensure their POS system is compatible and accessible to the franchisor at all times.