Who bears the expense of providing Mr. Sandless with access to the franchisee's customer database?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
- 23.1.7 Promptly return to us, at your expense, the Operations Manual and other materials provided by us or containing Confidential Information or Trade Secrets, or other information which relates to the System or the operation of the Business, including but not limited to computer files, customer data, programs and other materials provided to you by us;
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee is required to return to Mr. Sandless all computer files, customer data, programs, and other materials provided by them. The FDD does not explicitly state who bears the expense of providing Mr. Sandless with access to the franchisee's customer database. However, it does state that the franchisee must return these materials to Mr. Sandless at the franchisee's own expense.
This implies that the franchisee is responsible for any costs associated with transferring the customer database to Mr. Sandless. This could include the cost of data extraction, formatting, and transmission. It is important to note that this obligation arises specifically upon the termination of the franchise agreement.
Prospective franchisees should clarify with Mr. Sandless the exact procedures and potential costs associated with transferring the customer database upon termination. Understanding these obligations upfront can help franchisees plan for potential expenses and ensure a smooth transition should the franchise agreement end.