Who bears the expense of installing and maintaining the required computer systems and software for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
5. Computer Systems (Franchise Agreement, Section 12.3)
We require you to install and maintain computer systems and software, at your sole expense, meeting our minimum specifications for use at your Franchised Business. This includes entry-area computer hardware that operates our current required POS system, as specified in the Manual, and additional laptop computer or smart device that can operate other required software. You must also have Internet and other telecommunications equipment and services in accordance with our standards to permit electronic transmission of sales information. We reserve the right to change your requirements for computer hardware and software at any time.
You are required to use Mariana Tek, QuickBooks, Brandbot, and G-Suite to operate your Franchised Business.
QuickBooks allows us to independently and remotely access all of your sales data, including your Gross Revenue, through the Internet. We may in the future establish or modify the sales reporting systems as we deem appropriate for the accurate and expeditious reporting of Gross Revenue, and you must fully cooperate in implementing any such system at your expense.
The cost of the required computer hardware and software will range from $1,500 - $2,000 depending on the number of terminals. Monthly software access fees are approximately $159.00 - $699, subject to increase by the provider.
There are no contractual limitations on the frequency and cost of upgrades and/or updates to the above-described systems or programs.
We will have independent and unlimited electronic access to the information generated by and stored in your Mariana Tek and QuickBooks accounts. There are no contractual limitations on our right to have full access to this information. We may retrieve, download, analyze, and store such information and data at any time. We own all customer data stored in your Mariana Tek account.
We have no obligation to maintain, repair, update or upgrade your computer and software. At your cost, you must provide on-going maintenance and repairs to your computer and software. You must upgrade your computer hardware and software as necessary to operate the most current version of Mariana Tek, QuickBooks, other required applications, or any replacements thereto. We cannot estimate the cost of maintaining, updating, and upgrading your computer and software because it will depend on the make and model of your computer, required upgrades to operate our current membership manage
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–29)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisee is solely responsible for the costs associated with installing and maintaining the required computer systems and software. This includes hardware, software, internet, and telecommunications equipment necessary for the franchise. Fly Fitness requires franchisees to use specific software such as Mariana Tek, QuickBooks, Brandbot, and G-Suite.
The initial investment for computer hardware and software is estimated to range from $1,500 to $2,000, depending on the number of terminals needed. Additionally, franchisees can expect to pay monthly software access fees ranging from approximately $159.00 to $699, which are subject to change by the provider. Fly Fitness retains the right to modify the requirements for computer hardware and software at any time, and franchisees are responsible for implementing these changes at their own expense.
Fly Fitness does not have any obligation to maintain, repair, update, or upgrade the franchisee's computer systems and software. The franchisee must provide ongoing maintenance and repairs at their own cost and upgrade their systems as necessary to operate the most current versions of the required software. The FDD states that Fly Fitness cannot estimate the future costs of maintaining, updating, and upgrading computer systems due to variations in computer models and required upgrades. This means that franchisees need to budget for potential unforeseen expenses related to technology maintenance and upgrades throughout the term of their franchise agreement.
Fly Fitness has independent and unlimited electronic access to the data generated and stored in the franchisee's Mariana Tek and QuickBooks accounts. The franchisor owns all customer data stored in the Mariana Tek account. This level of access allows Fly Fitness to monitor sales data and other key performance indicators, ensuring compliance and providing support, but also places a responsibility on the franchisee to maintain accurate and secure data management practices.