Can Fitstop require a franchisee to change or upgrade their computer hardware or software?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
for any reason, to execute a transfer of any communications number to be held by us.
- ©2024 Fitstop USA, Inc. 6.9 Computer System; Required Software. You must at your cost: (1) install and use in the Franchise computer hardware and software which satisfies the functionality and specification requirements specified by us; (2) acquire and maintain software licenses in respect to all Required Software, whether covered by the Technology Fee or otherwise; and (3) change or upgrade any computer hardware or software used in the Franchise which we reasonably consider is obsolete or superseded, including installation of new computer hardware or software which satisfies the then current functionality and specification requirements specified by us. For the purposes of this Section, we may, at any time during the Term, require you to purchase computer hardware or license software specified by us directly from us or, subject to law, certain
suppliers which we may approve.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to update their computer hardware and software. Fitstop can mandate that franchisees change or upgrade any computer hardware or software used in the franchise if Fitstop reasonably considers it obsolete or superseded. This includes installing new computer hardware or software that meets Fitstop's current functionality and specification requirements. The franchisee bears the costs associated with these changes or upgrades.
Fitstop also requires franchisees to acquire and maintain software licenses for all required software, regardless of whether it's covered by the Technology Fee. Franchisees must use the Required Software and the CMS (presumably a content management system) according to Fitstop's directions. They must also upgrade computer hardware, electronic equipment, and software as reasonably required by Fitstop to access the Required Software and the CMS.
These stipulations mean a Fitstop franchisee must budget for ongoing technology upgrades and software licensing fees throughout the term of their franchise agreement. Failure to comply with these technology standards could result in a breach of the franchise agreement. The franchisee is also responsible for ensuring their computer systems are secure and for providing Fitstop with access to their systems for monitoring and auditing purposes.