Can the Franchisor poll the Big Apple Bagels franchisee's POS system?
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.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the franchisor has the right to poll the franchisee's POS system to verify gross revenues. Big Apple Bagels can access the POS system electronically through various means such as remote access, modem, the cloud, or any other Internet-based technology without the franchisee's knowledge or consent.
Big Apple Bagels reserves the right to download sales and other data from the franchisee's POS system. They can also obtain other sales data to gather sales trend data, product mix information, or for any other purpose they deem appropriate. The franchisee must provide unimpeded access to the POS system as requested by Big Apple Bagels, including the manner, form, and times requested.
This level of access is fairly common in franchising, as it allows the franchisor to monitor sales, calculate royalties, and gain insights into the performance of individual locations and the overall system. However, franchisees should ensure they understand the franchisor's data privacy and security policies to protect sensitive business information. Franchisees are also responsible for protecting their POS system and computer systems from viruses and hackers.