What must a Devon Creek franchisee follow regarding the computer system for the franchised business?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
12.3 Computer Systems.
- 12.3.1. Franchisee, at Franchisee's sole expense, shall install and maintain the Computer System and other 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.
- 12.3.2. 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.
- 12.3.3 Any and all customer data collected or provided by Franchisee, retrieved from Franchisee's Computer 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.
- 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 use 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 services and products offered by the Devon Creek System (the "Website").
Franchisor has sole discretion and control over the Website.
Franchisor shall include a listing on its Website of Franchisee's contact information and permit Franchisee to upload previous completed work.
Franchisee has no ownership or other proprietary rights to Franchisor's Website and Franchisee will lose all rights to such listing of Franchisee's contact information upon expiration or termination of this Agreement for any reason.
- 12.3.7.
In addition to Franchisee's obligations pursuant to Section 6.6 hereof, Franchisee shall pay all other fees, whether to Franchisor or to third party vendor (s), and expenses for technology required by this Agreement, including but not limited to, the costs of computer hardware and software, regularly recurring fees for software and Internet access, license fees, licensing or user-based fees.
- 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, franchisees must adhere to specific requirements regarding their computer systems. Devon Creek requires franchisees to install and maintain a computer system and other specified hardware and software at their own expense. Franchisees must also follow all procedures outlined in the manual or in writing by Devon Creek.
Devon Creek may also require franchisees to install and maintain systems that allow Devon Creek to access and retrieve information, including gross revenue, from the franchisee's computer system and accounts. Franchisees must also execute documents that allow Devon Creek to access this information. All customer data collected is owned exclusively by Devon Creek, who has the right to use the data without compensating the franchisee. The franchisee is only licensed to use the data for operating the franchised business, and this license terminates upon expiration or termination of the franchise agreement.
Furthermore, Devon Creek may require franchisees to enter into software license agreements for software developed or acquired for use within the Devon Creek system. Franchisees must maintain adequate hardware and software to access the internet at the speed required by Devon Creek and use the electronic mail account provided by Devon Creek. Franchisees are expected to read and respond to emails related to the franchised business daily and acknowledge receipt of all emails sent by Devon Creek. Franchisees are responsible for maintaining the security and integrity of their computer and payment processing systems, including implementing necessary security procedures and updates to protect against viruses, malware, and unauthorized access.