Can Cilantro Taco Grill require franchisees to enter into specific software license agreements?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
nchisee will lose all rights to such listing of Franchisee's location upon expiration or termination of this Agreement for any reason.
- 12.3.7 Franchisee shall pay all fees, whether to Franchisor or to third party vendor(s), and expenses for technology required by this Agreement, including but not limited to, the costs of computer software, hardware and peripherals, audio equipment and music programs and/or playlists, installation costs and regularly recurring fees for software and digital menu displays, Internet access, license fees, help desk fees, and licensing or user-based fees.
- 12.3.8 Franchisee is solely responsible for maintaining the security and integrity of the computer and payment processing systems used in the Franchised Business and the customer and other data stored therein. Franchisee, at Franchisee's sole cost and expense, shall implement all computer software, hardware, peripherals and Internet security procedures, including required updates or upgrades thereto, that are reasonably necessary to protect Franchisee's computer and payment processing systems and the data stored therein from viruses, malware, privacy breaches or other unauthorized access.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 Cilantro Taco Grill FDD, franchisees are required to pay for technology expenses, which may include software licenses. Specifically, franchisees must cover the costs of computer software, hardware, and peripherals, along with any installation costs and recurring fees for software, digital menu displays, internet access, license fees, help desk fees, and user-based fees. This indicates that Cilantro Taco Grill can mandate the use of specific software, as the franchisee is responsible for the associated costs.
Furthermore, the FDD states that franchisees may acquire rights to use certain software related to the franchised business or the Cilantro Taco Grill marks during the term of the Franchise Agreement. This implies that franchisees will need to comply with the terms and provisions of agreements related to this software.
In practical terms, a prospective Cilantro Taco Grill franchisee should anticipate ongoing technology-related expenses and understand that they might be required to use specific software chosen by the franchisor. It is important for potential franchisees to clarify with Cilantro Taco Grill which software programs are mandatory, the associated costs, and any potential restrictions or obligations related to their use.