Can Crawlspace Medic require franchisees to enter into software license agreements for software developed or acquired for use in the Crawlspace Medic system?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
automatically and irrevocably terminate, without any additional action or notice required by Franchisor, upon the expiration or earlier termination of this Agreement.
- 12.3.4. Franchisor may require Franchisee, at Franchisee's sole expense, to enter into software license agreements in the form that Franchisor requires for software Franchisor develops or acquires for use in the System. Currently this is Vonigo software.
- 12.3.5. Franchisee shall have and maintain adequate hardware and software in order to access the Internet at the speed required by Franchisor from time to time. Franchisee shall utilize the electronic mail account provided by Franchisor. Franchisee shall promptly read and respond to all electronic mail related to the Franchised Business no less often than on a daily basis and shall accept and acknowledge receipt of all electronic mail sent by Franchisor. Franchisee shall not establish any website or other listing on the Internet except as provided and specifically permitted herein.
- 12.3.6. Franchisor has established a website that provides information about the System and the products and services offered by the Crawlspace Medic System (the "Website"). Franchisor has sole discretion and control over the Website. Franchisor shall include a listing on its Website linking Franchisee's Franchised Business location.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, Crawlspace Medic does have the right to require franchisees to enter into software license agreements. These agreements would be for software that Crawlspace Medic develops or acquires for use within their system. Currently, the required software is Vonigo.
In addition to the software license agreements, Crawlspace Medic franchisees must maintain adequate hardware and software to access the internet at the speed Crawlspace Medic requires. Franchisees are also required to use the electronic mail account provided by Crawlspace Medic and respond to all emails related to the franchised business daily. Franchisees are restricted from establishing any website or internet listing unless specifically permitted by Crawlspace Medic.
Furthermore, franchisees are responsible for all fees and expenses related to required technology. This includes the costs of computer hardware and software, recurring fees for software and internet access, license fees, help desk fees, and any licensing or user-based fees for a franchise portal or benchmarking platform. Currently, this technology fee is 0.5% of gross revenue per unit per month. This ongoing cost should be factored into the franchisee's financial projections.