Under what conditions can Flowerama require a franchisee to upgrade their POS System?
Flowerama Franchise · 2024 FDDAnswer from 2024 FDD Document
We reserve the right to specify the POS System or any component thereof you must purchase at any time. We also have the right to change the approved POS System in the future. You must, upon 90 days' notice from us, upgrade your POS System, but no more frequently than every 3 years during the term of your Franchise Agreement. When we require you to purchase our approved POS System, the information below will apply. If you are a start-up franchise, you must purchase the POS System we designate or approve. (Franchise Agreement, Section 18 E).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 38–52)
What This Means (2024 FDD)
According to Flowerama's 2024 Franchise Disclosure Document, Flowerama reserves the right to specify or change the required POS system. Flowerama can require a franchisee to upgrade their POS system, but no more frequently than every three years during the term of the Franchise Agreement. Flowerama must provide 90 days' notice before the upgrade is required. If a franchisee is starting a new franchise, they must purchase the POS System that Flowerama designates or approves.
The approved POS Systems are listed in the designated and approved suppliers list that Flowerama provides. Currently approved systems include the BloomNet Business Management System and the Visual Ticket POS System, but Flowerama may approve other systems in the future. The hardware distributor, manufacturer, and software vendor for each approved POS system are also listed in the FDD.
The estimated cost to purchase or lease the BloomNet POS System ranges from approximately $150 to $10,000, with monthly costs for lease, maintenance, upgrades, and updates estimated at approximately $200 per month. For the Visual Ticket POS System, the estimated purchase or lease cost ranges from approximately $5,000 to $50,000, with monthly costs for lease, maintenance, upgrades, and updates ranging from approximately $200 to $500 per month, depending on the number of stations and features chosen. Franchisees are also required to pay a monthly charge for technical support as established by their service provider.