What is the Craters & Freighters franchisee's obligation regarding the maintenance of the computer system and software program?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ls, and equipment as required by Franchisor. Franchisee must obtain high-speed communication access for its computer system such as broadband, DSL, or other high-speed capacity. Franchisee agrees to maintain such computer system and software program in good repair at its expense. The aggregate cost of Franchisee's obligations to carry out upgrades of the computer system, addition of components to the computer system, and replacement of components to the computer system will not exceed Five Thousand Dollars ($5,000) per year during the term of this Agreement. Franchisee acknowledges that Franchisor cannot estimate the cost of maintaining, updating, or upgrading Franchisee's computer system or software, as such cost will depend on Franchisee's repair history and local cost of computer maintenance services in its area and technological advances, which Franchisor cannot predict.
- 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.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the franchisee is responsible for maintaining the computer system and software program in good repair at their own expense. This includes purchasing any additional select software, hardware, dedicated telephone and power lines, and other computer-related accessories as required by Craters & Freighters. The franchisee must also obtain high-speed communication access for their computer system.
The aggregate cost for upgrades, additions, and replacements to the computer system cannot exceed $5,000 per year during the term of the agreement. However, Craters & Freighters acknowledges that they cannot estimate the exact cost of maintaining, updating, or upgrading the computer system or software, as it depends on the franchisee's repair history, local costs of computer maintenance services, and technological advances.
Craters & Freighters also emphasizes that computer systems are vulnerable to various issues like viruses, bugs, power disruptions, and hacker attacks. While Craters & Freighters will provide the proprietary software, they do not guarantee that their systems or those of their approved suppliers will be immune to these problems. The franchisee is solely responsible for protecting themselves from these vulnerabilities, which may include purchasing firewalls, access code protection, anti-virus systems, and using backup systems. Additionally, the franchisee must maintain the email accounts established by Craters & Freighters for the franchised business.