Is Crown Gold Exchange obligated to provide ongoing maintenance for the point-of-sale and computer systems?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
$200 and $400 to purchase.
We are not obligated to provide any ongoing maintenance, repairs, upgrades, or updates. We do require you enter into any such contract with a third party.
You must upgrade or update any system when we determine. There is no contractual limit on the frequency or cost of this obligation.
We estimate that the annual cost of any optional or required maintenance, updating, upgrading, or support contracts will be $200.
You must give us independent access to the information that will be generated or stored in these systems. The information that we may access will include sales, customer data, and reports. There is no contractual limitation on our righ
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–24)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, Crown Gold Exchange is not obligated to provide ongoing maintenance, repairs, upgrades, or updates for the point-of-sale (POS) system and computer system. Instead, franchisees are required to enter into a contract with a third party for these services.
Crown Gold Exchange does require franchisees to upgrade or update their systems when the franchisor determines it is necessary. There is no contractual limit on the frequency or cost of these required upgrades or updates, which could pose a financial risk to franchisees if updates are frequent or costly. The FDD estimates that the annual cost of optional or required maintenance, updating, upgrading, or support contracts will be $200.
Furthermore, franchisees must provide Crown Gold Exchange with independent access to all information generated or stored within these systems, including sales data, customer data, and reports. There is no contractual limitation on Crown Gold Exchange's right to access this information. This level of access allows Crown Gold Exchange to monitor the franchisee's business operations closely.