Can Fly Fitness require me to install and maintain systems for web-based payment processing at my own expense?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
h understatements during the term of this Agreement may, at the option of Franchisor, be considered an incurable default and thereby subject to termination as provided herein.
12.3. Computer Systems.
- 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;
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 systems and web-based payment processing accounts at their own expense. These systems must permit 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.
Fly Fitness also requires franchisees to install and maintain computer hardware and software, including a designated point-of-sale system (POS System), that Fly Fitness requires for the operation of the franchised business. Franchisees must follow the procedures related to these systems as specified in the manual or in writing.
Furthermore, franchisees are solely responsible for maintaining the security and integrity of the computer and payment processing systems used in their Fly Fitness business, as well as the customer and other data stored within those systems. Franchisees must implement all necessary computer hardware, software, and internet security procedures, including updates and upgrades, to protect their systems and data from viruses, malware, privacy breaches, or other unauthorized access, all at the franchisee's own cost and expense.