factual

Does Crab N Spice require franchisees to use any specific 'Required Software' that they designate?

Crab_N_Spice Franchise · 2024 FDD

Answer from 2024 FDD Document

Point of Sale and Computer Systems

We require you to buy (or lease) and use a point-of-sale system and computer system as follows:

Clover POS

Two Terminals for POS

QuickBooks

Email Addresses

In addition to the POS System, you must have a basic computer/laptop to use exclusively in connection with your Computer System that must have: (i) the ability to access high-speed Internet (wirelessly) twenty-four (24) hours a day; (ii) Windows XP, Vista or newer Windows operating system software installed, along with a Microsoft Office software suite containing Word and Excel; and (iii) the ability to run the accounting/bookkeeping software we designate (if any). The principal functions of the Computer System will be for bookkeeping, creating invoices, preparing materials, and for other general use in connection with the Franchised Business. We do not currently have any minimum requirements regarding the RAM storage that your computer / laptop must have, so long as the hardware you are using can perform the tasks outlined in this Item and the Manuals. You will also need a basic printer to use in connection with your backoffice computer/laptop. The computer/laptop you use in connection with the Franchised Business may not be used for any other business purpose. We may modify our System standards and specifications for our Computer System, and may otherwise require you to use any Required Software we designate.

If you already have computer hardware and/or software that meets our then-current standards for your back of office computer, then you may use these items in connection with your Franchised Business provided you obtain our approval.

The system will include the appropriate hardware and software to run a thriving business. Including the above POS and printers specifically required. These systems will generate or store

data such as sales data, customer information, sales trends and charts, labor data, inventory and financial reports.

We estimate that these systems will cost between $1,500 and $3,000 to purchase.

We are not obligated to provide any ongoing maintenance, repairs, upgrades, or updates. We do not require you enter into any such contract with a third party.

You must upgrade or update any system when we determine. There is no contractual limit on the frequency or cost of this obligation.

We estimate that the annual cost of any optional or required maintenance, updating, upgrading, or support contracts will be $100 to $200 per month depending on the level of support you need for your business. Email addresses will be $20 per month per email address.

You must give us independent access to the information that will be generated or stored in these systems. The information that we may access will include sales, customer data, and reports. There is no contractual limitation o

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 20–27)

What This Means (2024 FDD)

According to Crab N Spice's 2024 Franchise Disclosure Document, franchisees are required to buy (or lease) and use a specific point-of-sale (POS) and computer system. The mandatory software includes Clover POS, QuickBooks, and designated email addresses. Additionally, franchisees must have a basic computer/laptop with high-speed internet access, a Windows operating system (XP, Vista, or newer), and a Microsoft Office software suite containing Word and Excel. The computer system's primary functions are for bookkeeping, creating invoices, preparing materials, and general use for the franchised business.

The FDD specifies that Crab N Spice may modify its system standards and specifications for the computer system and may require franchisees to use any 'Required Software' they designate. If a franchisee already possesses computer hardware and/or software meeting Crab N Spice's standards, they may use those items with the franchisor's approval.

The estimated cost for these systems ranges from $1,500 to $3,000 to purchase. While Crab N Spice is not obligated to provide ongoing maintenance, repairs, upgrades, or updates, franchisees must upgrade or update any system when Crab N Spice determines it is necessary, and there is no contractual limit on the frequency or cost of this obligation. The annual cost of optional or required maintenance, updating, upgrading, or support contracts is estimated to be $100 to $200 per month, depending on the level of support needed, with email addresses costing $20 per month per email address. Crab N Spice also requires independent access to the information generated or stored in these systems, including sales, customer data, and reports, without any contractual limitation on their right to access this information.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.