What is included in the definition of 'Computer Equipment' that Mr. Sandless franchisees must purchase and maintain?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase and maintain all computer hardware, software and other equipment ("Computer Equipment") specified by us to be used in connection with the operation of your Business. You must update or replace any of the Computer Equipment, including software, as we specify, and you must use the Computer Equipment in the manner specified by us. You must establish and maintain Internet access and an electronic mail address as we require, and you must keep us apprised of this information during the term of this Agreement. We have the right to require you to enter into a separate maintenance agreement for the Computer Equipment, and to update or upgrade Computer Equipment components as we deem necessary.
There are no limits in this Agreement on either our right to require you to obtain updates and/or upgrades for your Computer Equipment, or the cost of any such updates and/or upgrades.
We have the right to access your customer database on your Computer Equipment at any time and you will provide us with access, at your expense, as well as any necessary user IDs and passwords for such access. We may access and download all information stored on your Computer Equipment, including sales and customer information, and there is no limit on our right to access and download this data. We may use the data downloaded from your Computer Equipment in any manner we choose, without compensation to you. Your customer database will, at all times, remain our property.
We reserve the right to require you to install a "systems backup solution" which backs up critical data stored in your computer system using an off-premises storage scheme. At our request, you must provide us with access to your backed up data.
Notwithstanding the fact that you must buy, use and maintain the Computer Equipment under our standards and specifications, you will have the sole and complete responsibility for: (1) the acquisition, operation, maintenance and upgrading of the Computer Equipment; and (2) any and all consequences that may arise if the Computer Equipment is not properly operated, maintained and upgraded, and/or we are not provided with access to the Computer Equipment as we require.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees must purchase and maintain all computer hardware, software, and other equipment specified by Mr. Sandless to be used in connection with the operation of their business. This equipment is collectively referred to as "Computer Equipment." Franchisees are also obligated to update or replace any of this Computer Equipment, including software, as specified by Mr. Sandless, and to use it in the manner prescribed.
Furthermore, franchisees must establish and maintain Internet access and an electronic mail address as required by Mr. Sandless, keeping the franchisor informed of this information throughout the term of the Franchise Agreement. Mr. Sandless retains the right to require franchisees to enter into a separate maintenance agreement for the Computer Equipment and to update or upgrade Computer Equipment components as deemed necessary by Mr. Sandless.
Mr. Sandless also has the right to access the franchisee's customer database on their Computer Equipment at any time. The franchisee must provide Mr. Sandless with access, at their own expense, including any necessary user IDs and passwords. Mr. Sandless may access and download all information stored on the Computer Equipment, including sales and customer information, for their own use without compensating the franchisee. The customer database remains the property of Mr. Sandless at all times.
Mr. Sandless also reserves the right to require franchisees to install a "systems backup solution" to back up critical data using an off-premises storage scheme and must provide access to the backed up data upon request. Despite the franchisee's responsibility to buy, use, and maintain the Computer Equipment according to Mr. Sandless's standards, the franchisee bears the sole responsibility for the acquisition, operation, maintenance, and upgrading of the Computer Equipment, as well as any consequences arising from its improper operation, maintenance, or upgrading, or from failure to provide Mr. Sandless with the required access.