For Fly Fitness, who is responsible for the expense of installing and maintaining the required computer hardware and software, including the POS system?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
fault hereunder. Two (2) such 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; 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.
- 12.3.4. Franchisor may require Franchisee, at Franchisee's sole expense, to enter into software license agreements in the form that Franchisor requires for software Franchisor develops or acquires for use in the System.
- 12.3.5. Franchisee shall have and maintain adequate hardware and software in order to access the Internet at the speed required by Franchisor from time to time. Franchisee shall utilize the electronic mail account provided by Franchisor. Franchisee shall promptly read and respond to all electronic mail related to the Franchised Business no less often than on a daily basis and shall accept and acknowledge receipt of all electronic mail sent by Franchisor. Franchisee shall not
- establish any website or other listing on the Internet except as provided and specifically permitted herein.
- 12.3.6. Franchisor has established a website that provides information about the System and the services and products offered by the Fly Fitness System (the "Website"). Franchisor has sole discretion and control over the Website. Franchisor shall include a listing on its Website linking Franchisee's Franchised Business location.
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 the expenses associated with computer systems. Specifically, the franchisee must install and maintain all required computer hardware and software, including the designated point-of-sale (POS) system, at their sole expense. They must also adhere to the procedures outlined in the manual or in writing by Fly Fitness.
Fly Fitness may also require the franchisee to install and maintain systems and web-based payment processing accounts that allow Fly Fitness to independently and electronically access and retrieve information from the franchisee's POS system and other computer systems, including data related to Gross Revenue. The franchisee is responsible for executing any documents necessary for Fly Fitness to access this information.
Furthermore, the franchisee is solely responsible for maintaining the security and integrity of the computer and payment processing systems used in their Fly Fitness business, including protecting customer data. This includes implementing necessary security procedures, software updates, and upgrades to safeguard against viruses, malware, privacy breaches, and unauthorized access. The franchisee bears the cost of these security measures.