Can Crawlspace Medic require franchisees to enter into specific software license agreements?
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 Crawlspace Medic's 2024 Franchise Disclosure Document, Crawlspace Medic may require franchisees to enter into specific software license agreements. The franchisee is responsible for the expense of these agreements, and the software must be in the form that Crawlspace Medic requires for software it develops or acquires for use in its system. Currently, the required software is Vonigo.
In addition to software licenses, Crawlspace Medic franchisees must maintain adequate hardware and software to access the internet at the speed Crawlspace Medic requires. Franchisees must also use the electronic mail account provided by Crawlspace Medic and respond to all emails related to the franchised business no less than daily, acknowledging receipt of all emails sent by Crawlspace Medic. 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 for technology required by the agreement. This includes, but is not limited to, the costs of computer hardware and software, recurring fees for software and internet access, license fees, help desk fees, and 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 means a franchisee's technology costs will fluctuate depending on their sales volume.