What is the Devon Creek franchisee's obligation to pay fees for technology required by the Franchise Agreement?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
- 12.4 Safety and Security. Franchisee is solely responsible for the safe and secure operation of the Franchised Business and the services provided thereby for Franchisee, Franchisee's personnel, customers, agents and the general public. All matters of safety and security are within Franchisee's discretion and control, and Franchisee's indemnification obligations set forth in Section 15.6 hereof shall apply to any claims made against Franchisor regarding safety or security.
- 12.5 Prices. Subject to applicable law, Franchisor may recommend or set maximum prices for
services and products offered by Franchisee, which may vary depending on geographic and other market conditions.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, franchisees have several obligations regarding technology and related fees. Devon Creek requires franchisees to maintain adequate hardware and software to access the internet at the speed the franchisor requires. Franchisees must use the email account provided by Devon Creek and respond to all emails related to the franchised business daily, acknowledging receipt of all emails from the franchisor.
In addition to these requirements, Devon Creek franchisees must pay all fees and expenses for technology required by the Franchise Agreement. These expenses include the costs of computer hardware and software, recurring fees for software and internet access, license fees, and user-based fees, whether paid to Devon Creek or third-party vendors. Franchisees are also 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.
Furthermore, Devon Creek charges a weekly technology fee of $125.00, which may increase by 10% per year, but cannot exceed $500 per week. Devon Creek has the discretion to replace the existing technology with different technology developed by them or a third party, and the franchisee will be responsible for paying the then-current fees for the replacement technology and continuous access to it.
These technology requirements and fees represent a significant ongoing expense for Devon Creek franchisees. It is important for prospective franchisees to factor these costs into their financial projections and understand that these fees can increase over time. Franchisees should also inquire about the specific technology requirements and associated costs to ensure they are prepared to meet these obligations.