What documents must a Devon Creek franchisee execute to permit electronic access to their Computer System?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor may require Franchisee, at Franchisee's sole expense, to install and maintain systems and web-based payment processing and bookkeeping accounts that permit Franchisor to independently and electronically access and retrieve any information stored in Franchisee's Computer System and 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 Computer System, other systems and webbased payment processing and bookkeeping accounts.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, a franchisee may be required to execute documents that allow Devon Creek to independently and electronically access and retrieve information stored in the franchisee's computer system, web-based payment processing, and bookkeeping accounts. This access includes, but is not limited to, information concerning Gross Revenue.
This requirement means that Devon Creek has the right to monitor a franchisee's financial performance and other key operational data directly. The franchisee bears the expense of setting up and maintaining these systems in a manner that allows Devon Creek this access. This level of access is relatively common in franchising, as it allows the franchisor to ensure brand standards, monitor royalties, and provide support.
Prospective franchisees should carefully consider the implications of granting such access, including data security and privacy concerns. It is important to understand what specific information Devon Creek will be able to access, how that information will be used, and what measures are in place to protect sensitive data. Franchisees should also clarify who bears the cost if there is a data breach.