Can Fly Fitness require franchisees to use a specific point-of-sale (POS) system?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.3.1.
Franchisee, at Franchisee's sole expense, shall install and maintain computer hardware and software, including any designated point-of-sale system ("POS System"), that 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 accounts that permit Franchisor to independently and electronically access and retrieve any information stored in Franchisee's POS System, other computer systems and web-based payment processing 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 POS System, other computer systems and web-based payment processing accounts.
- 12.3.3 Any and all customer data collected or provided by Franchisee, retrieved from Franchisee's POS 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; provided that, this license shall automatically and irrevocably terminate, without any additional action or notice required by Franchisor, upon the expiration or earlier termination of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness can require franchisees to install and maintain a designated point-of-sale (POS) system. The franchisee is responsible for the expense of the POS system, including hardware and software. Franchisees must also follow the procedures related to the POS system as specified in the manual or in writing.
Fly Fitness may also require franchisees to install and maintain systems and web-based payment processing accounts that allow Fly Fitness to independently and electronically access and retrieve any information stored in the franchisee's POS system, other computer systems, and web-based payment processing accounts, including information concerning Gross Revenue. Franchisees must also execute documents that Fly Fitness deems necessary to permit this access.
All customer data collected or provided by the franchisee, retrieved from the franchisee's POS system, or otherwise collected from the franchisee by Fly Fitness is owned exclusively by Fly Fitness and is considered proprietary and confidential information. Fly Fitness has the right to use this data in any manner without compensating the franchisee. The franchisee is only licensed to use the data for operating the franchised business, and this license terminates upon expiration or termination of the Franchise Agreement.