Is a Deka Lash franchisee required to modify their existing software if Deka Lash changes its specifications?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Software, Subscriptions and Computer Systems. We may specify software, subscriptions, licenses, tablets, computer systems, and equipment to assist in the operation of your Franchised Business. We may update, modify, or otherwise make changes to our software, subscriptions, licenses, tablets, computer systems, and equipment specifications and that, in the event of any updates, modification or other changes in or additions to our specifications, you will promptly
modify, replace or add to your existing software, subscriptions, licenses, tablets, computer systems and equipment at your sole expense. (Franchise Agreement, Section 5.6).
Computer Systems:
We require you to have an internet connection, email, and a laptop or desktop computer. We recommend an Apple iMac or MacBook. We require a minimum of two iPads or other tablets as specified by us at each studio. You must use the studio software we specify, which may include customer scheduling, online booking, reporting, and a Point of Sale/Credit Card application. We may change the computer hardware or software (including the point-of-sale software, studio software) at any time and we reserve the right to require you to convert to the new system at your expense. We also require that you use QuickBooks Online for your financial record keeping.
These items can be purchased for approximately $2,000- $5,000. Neither we nor our affiliates or any third party have any obligation to provide ongoing maintenance, repairs, upgrades or updates. You must maintain your computer systems in good working order and must replace, update or upgrade your hardware systems as we require. The estimated annual cost of optional or required maintenance, updating, upgrading, or support contracts to your computer systems is approximately $1,000.
Independent Access to Information. We have, and you are required to provide, independent access to the information that will be generated or stored in your computer systems, which includes, but not limited to, customer, transaction, and operational information. You must, at all times, give us unrestricted and independent electronic access to your studio information including, but not limited to, your studio software, appointment software and point-of-sale system, for the purposes of obtaining information about the studio.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–40)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees are required to modify their existing software, subscriptions, licenses, tablets, computer systems, and equipment if Deka Lash updates, modifies, or changes its specifications. This includes promptly making the necessary modifications, replacements, or additions at the franchisee's sole expense.
This requirement extends to the studio software that Deka Lash specifies, which may include customer scheduling, online booking, reporting, and point of sale/credit card applications. Deka Lash retains the right to change the computer hardware or software, including point-of-sale software and studio software, at any time and can require franchisees to convert to the new system, with the franchisee bearing the cost. Franchisees must also use QuickBooks Online for financial record keeping.
Furthermore, Deka Lash requires franchisees to maintain their computer systems in good working order and to replace, update, or upgrade their hardware systems as required. The estimated annual cost for optional or required maintenance, updating, upgrading, or support contracts for these computer systems is approximately $1,000. Franchisees must also provide Deka Lash with unrestricted and independent electronic access to their studio information, including studio software, appointment software, and point-of-sale system, for the purpose of obtaining information about the studio.
These stipulations ensure that all Deka Lash franchise locations operate on standardized and up-to-date systems, allowing for consistency and potentially improving operational efficiency. However, franchisees should be aware that these mandatory updates and maintenance can represent a significant ongoing expense, as they are responsible for covering all associated costs.