Who is responsible for the expense of installing and maintaining the computer hardware and software required by Crawlspace Medic?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
statements during the term of this Agreement may, at the option of Franchisor, be considered an incurable default and thereby subject to termination as provided herein
12.3. Computer Systems.
- 12.3.1. Franchisee, at Franchisee's sole expense, shall install and maintain the computer hardware and software Franchisor requires for the operation of the Franchised Business and shall follow the procedures related thereto that Franchisor specifies in the Manual or otherwise in writing. Currently, Franchisee must use Vonigo and QuickBooks.
- 12.3.2. Franchisor may require Franchisee, at Franchisee's sole expense, to install and maintain systems and web-based payment processing accounts that permit Franchisor to independently and electronically access and retrieve any information stored in Franchisee's POS System, other computer systems and web-based payment processing accounts, including, without limitation, information concerning Gross Revenue. Upon Franchisor's request, Franchisee shall execute such documents as Franchisor deems necessary to permit Franchisor to independently and electronically access and retrieve all information stored on Franchisee's POS System, other computer systems and web-based payment processing accounts.
- 12.3.3 Any and all customer data collected or provided by Franchisee, retrieved from Franchisee's POS System, or otherwise collected from Franchisee by Franchisor or provided to Franchisor, is and will be owned exclusively by
Franchisor and will be considered to be Franchisor's proprietary and Confidential Information. Franchisor has the right to use such data in any manner without compensation to Franchisee. Franchisor licenses to Franchisee the use of such data solely for the purpose of operating the Franchised Business; provided that, this license shall 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, the franchisee is solely responsible for the expenses related to installing and maintaining the required computer hardware and software for operating the franchised business. This includes the cost of the hardware and software itself, as well as any recurring fees for software, internet access, license fees, help desk fees, and user-based fees for platforms like a franchise portal. Currently, franchisees are required to use Vonigo and QuickBooks software.
This means a prospective Crawlspace Medic franchisee must budget for these ongoing technology expenses. Additionally, franchisees must maintain adequate hardware and software to access the internet at the speed required by Crawlspace Medic and utilize the electronic mail account provided by the franchisor, responding to emails daily. The franchisee is also responsible for setting up and maintaining systems and web-based payment processing accounts that allow Crawlspace Medic to access and retrieve information, including gross revenue data.
The FDD specifies that the franchisee must follow the procedures outlined in the manual or in writing regarding computer systems. Furthermore, all customer data collected is owned exclusively by Crawlspace Medic, with the franchisee only licensed to use it for operating the franchised business. This license terminates upon expiration or termination of the franchise agreement.
In summary, the franchisee bears the full financial burden and operational responsibility for all technology-related aspects of the business, while Crawlspace Medic retains ownership and control over the data generated by these systems. This is a common arrangement in franchising, where franchisees are expected to cover their own operational costs, including technology, while adhering to the franchisor's standards and systems.