factual

Are Devon Creek franchisees responsible for fees paid to third-party vendors for technology?

Devon_Creek Franchise · 2024 FDD

Answer from 2024 FDD Document

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.

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2024 FDD)

According to Devon Creek's 2024 Franchise Disclosure Document, franchisees are responsible for paying technology-related fees to both Devon Creek and third-party vendors. Specifically, franchisees must cover all expenses for technology required by the Franchise Agreement. These expenses include, but are not limited to, the costs of computer hardware and software, recurring fees for software and Internet access, license fees, and user-based fees.

This means that as a Devon Creek franchisee, you should anticipate ongoing technology costs beyond the initial franchise fee. These costs are in addition to the $125 per week technology fee that franchisees must pay to Devon Creek. The franchisor also has the discretion to increase the technology fees by 10% per year, up to a maximum of $500 per week, or replace the technology with different technology developed by Devon Creek or a third party, and the franchisee will pay the then-current fees for the replacement technology and for continuous access thereto.

Furthermore, Devon Creek franchisees are solely responsible for maintaining the security and integrity of their computer and payment processing systems. This includes implementing necessary security procedures, updates, and upgrades to protect against viruses, malware, privacy breaches, and unauthorized access. Therefore, franchisees should budget not only for the initial technology setup but also for continuous maintenance, security, and potential upgrades to remain compliant with Devon Creek's standards and protect customer data.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.