Who is responsible for the expense of installing and maintaining the computer system required for the Devon Creek franchised business?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor, be considered an incurable default and thereby subject to termination as provided herein.
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;
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 expenses related to the computer system. Specifically, the franchisee must install and maintain the computer system and other required hardware and software at their sole expense. This includes following the procedures outlined in the Devon Creek manual.
Devon Creek may also require the franchisee to install and maintain systems for payment processing and bookkeeping, again at the franchisee's sole expense. These systems must allow Devon Creek to independently access and retrieve information, including gross revenue data. The franchisee must also sign documents that Devon Creek deems necessary to permit this access.
Furthermore, Devon Creek may require franchisees to enter into software license agreements for software developed or acquired for use within the Devon Creek system, also at the franchisee's expense. The franchisee is also responsible for maintaining adequate hardware and software to access the internet at the speed required by Devon Creek. The franchisee is also 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.