Can Crawlspace Medic require franchisees to install systems for electronic access to information?
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, Crawlspace Medic franchisees may be required to utilize specific software and maintain adequate hardware and software to access the internet at a speed required by the franchisor. Currently, the required software is Vonigo. Franchisees must use the electronic mail account provided by Crawlspace Medic and respond to all emails related to the franchised business daily, acknowledging receipt of all emails sent by the franchisor. Franchisees are restricted from establishing any website or internet listing unless specifically permitted by Crawlspace Medic.
Crawlspace Medic maintains a website providing information about the Crawlspace Medic system, and the franchisor has sole discretion and control over this website. Crawlspace Medic will include a listing on its website linking to the franchisee's franchised business location; however, the franchisee has no ownership or proprietary rights to the franchisor's website and will lose all rights to the link upon expiration or termination of the Franchise Agreement.
Franchisees are responsible for all fees and expenses for technology required by the agreement, including computer hardware and software costs, recurring software and internet access fees, 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 that a Crawlspace Medic franchisee must budget not only for the initial costs of setting up their technology but also for ongoing monthly fees to remain compliant with Crawlspace Medic's requirements.