Who is responsible for protecting a Craters & Freighters franchise from 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, the franchisee is solely responsible for protecting their computer systems from vulnerabilities. Craters & Freighters acknowledges that computer systems are susceptible to various issues, including viruses, bugs, power disruptions, communication line disruptions, internet access failures, date-related problems, and hacker attacks. While Craters & Freighters may provide or approve certain information or communication systems, it does not guarantee these systems will be free from such vulnerabilities.
To mitigate these risks, Craters & Freighters franchisees must take reasonable steps to secure their systems. This includes implementing measures such as purchasing firewalls, using access code protection, installing anti-virus systems, and utilizing backup systems. Franchisees are also expected to verify that their approved suppliers, lenders, lessors, customers, and governmental agencies they rely on have reasonable protections in place.
Furthermore, the FDD states that franchisees must purchase any additional select software, hardware, dedicated telephone and power lines, and other computer-related accessories, peripherals, and equipment as required by Craters & Freighters. Franchisees also agree to maintain their computer systems and software programs in good repair at their own expense. The cost for upgrades, additions, and replacements to the computer system is capped at $5,000 per year during the term of the agreement. However, Craters & Freighters cannot estimate the total cost of maintaining, updating, or upgrading the franchisee's computer system due to variations in repair history, local costs, and technological advancements.