What does the Craters & Freighters franchise agreement say about the franchisee's responsibility for computer system vulnerabilities?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.8 Franchisee's Responsibilities Relating to Vulnerability of Computer Systems.
Franchisee acknowledges and understands that computer systems are vulnerable to computer viruses, bugs, power disruptions, communication line disruptions, Internet access failures, Internet content failures, date-related problems, and attacks by hackers and other unauthorized intruders.
Franchisor does not guarantee that information or communication systems supplied by Franchisor or its approved suppliers will not be vulnerable to these problems.
Franchisee acknowledges and agrees that Franchisee is solely responsible for protecting itself from these problems.
Franchisee must also take reasonable steps to verify that Franchisee's approved suppliers, lenders, lessors, customers, and governmental agencies on which Franchisee relies, are reasonably protected.
This may include taking reasonable steps to secure Franchisee's systems, including, but not limited to, purchasing firewalls, access code protection, anti-virus systems, and using backup systems.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees acknowledge that computer systems are vulnerable to various issues, including viruses, bugs, power and communication disruptions, internet failures, data-related problems, and hacker attacks. Craters & Freighters does not guarantee that their systems or those of approved suppliers are immune to these vulnerabilities.
The franchise agreement stipulates that franchisees are solely responsible for protecting themselves from these computer system problems. This includes taking reasonable steps to verify that approved suppliers, lenders, lessors, customers, and governmental agencies they rely on are also reasonably protected.
To secure their systems, Craters & Freighters franchisees may need to invest in firewalls, access code protection, anti-virus systems, and backup systems. Maintaining a secure computer system is a critical responsibility for franchisees to protect their business operations and sensitive data.