Can Crawlspace Medic require franchisees to install and maintain systems and web-based payment processing accounts?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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. Franchisee has no ownership or other proprietary rights to Franchisor's website and Franchisee will lose all rights to such link to Franchisee's location upon expiration or termination of this Agreement for any reason.
- 12.3.7. Franchisee shall pay all fees and expenses for technology required by this Agreement, including but not limited to, the costs of computer hardware and software, regularly recurring fees for software and Internet access, license fees, help desk fees, licensing or user-based fees for a franchise portal or a benchmarking platform. Currently this fee is 0.5% of Gross Revenue per unit per month.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, franchisees are required to maintain specific hardware and software to access the internet at speeds mandated by Crawlspace Medic. Franchisees must use the email account provided by Crawlspace Medic and respond to communications daily. They are restricted from creating independent websites or internet listings unless explicitly permitted.
Crawlspace Medic maintains a website with information about the Crawlspace Medic system, and franchisees will have a link to their location on it. However, franchisees do not have ownership rights to Crawlspace Medic's website and will lose the link upon termination of the agreement. Franchisees are responsible for all technology-related fees, including hardware, software, internet access, license fees, and help desk fees. Currently, this technology fee is 0.5% of gross revenue per unit per month.
Franchisees must enter into software license agreements for software Crawlspace Medic develops or acquires for the system, such as the Vonigo software. These stipulations ensure that franchisees maintain consistent technological standards and communication protocols as dictated by Crawlspace Medic. This also allows Crawlspace Medic to maintain control over its brand's online presence and customer interaction.