Who bears the cost of implementing all computer security measures for my Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisee is responsible for all costs associated with implementing computer security measures for their franchise. The franchisee must implement all necessary computer hardware, software, and internet security procedures, including updates and upgrades, to protect their computer and payment processing systems and the data stored within them from threats like viruses, malware, and unauthorized access. This responsibility extends to maintaining the security and integrity of these systems.
This means that a Fly Fitness franchisee will need to budget for initial setup costs for security software and hardware, as well as ongoing expenses for updates, maintenance, and potentially, security audits. The franchisee is also responsible for ensuring that their systems comply with any security standards or requirements mandated by Fly Fitness.
Given the increasing importance of data security and the potential costs associated with data breaches, prospective Fly Fitness franchisees should carefully consider these responsibilities and associated costs. They may want to consult with IT professionals to understand the full scope of security measures required and to develop a comprehensive security plan for their franchise.