Who bears the cost of implementing computer security procedures for a Devon Creek franchise?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.3.8 Franchisee is solely responsible for maintaining the security and integrity of the computer and payment processing systems used in the Franchised Business and the customer and other data stored therein.
Franchisee, at Franchisee's sole cost and expense, shall implement all computer hardware, software and Internet security procedures, including required updates or upgrades thereto, that are reasonably necessary to protect Franchisee's computer and payment processing systems and the data stored therein from viruses, malware, privacy breaches or other unauthorized access.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the franchisee is responsible for the costs associated with implementing computer security procedures. The franchisee must implement all necessary computer hardware, software, and internet security procedures at their own expense. This includes any required updates or upgrades to protect their computer and payment processing systems, as well as the data stored within those systems, from threats like viruses, malware, privacy breaches, or other unauthorized access.
This means a prospective Devon Creek franchisee needs to budget for these ongoing technology costs. These costs are in addition to other technology fees that the franchisee must pay, whether to Devon Creek or to third-party vendors. These include the costs of computer hardware and software, recurring fees for software and internet access, and license or user-based fees.
It is common in franchising for franchisees to bear the costs of technology and security upgrades, as they are operating the business and directly benefit from secure systems. However, the franchisee should clarify with Devon Creek what specific security measures are required initially and on an ongoing basis to accurately estimate these costs.