Can Mr. Sandless require franchisees to update or replace their computer equipment?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
s related to attendance at a franchisee convention, including travel, lodging and meals.
Computer System
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. Currently you must have a Windows based personal computer with the Windows 7 operating system, at least 2 GB RAM and at least a 200 GB hard drive, as well as the monitor and printer of your choice. The Computer Equipment will provide you with e-mail capability, sales tracking, inventory tracking and customer information. We estimate that the cost to purchase the required Computer Equipment will be approximately $1,600. The Computer Equipment must be compatible with our central accounting system through a modem or other manual or electronic access. We have the right to require you to enter into a separate maintenance agreement for your Computer Equipment. You must update or replace any of the Computer Equipment, including hardware and software components, as we specify, and you must use the Computer Equipment in the manner we specify. There is no limit in the Franchise Agreement on either our right to require you to upgrade and/or update your Computer Equipment, or the cost of any upgrades and/or updates. Neither we nor any affiliate of ours will provide you with any maintenance, updates and/or upgrades for your Computer Equipment. The estimated cost of maintenance, updating, upgrading or support contracts for the computer system can range from $250 to $600 per year.
You must establish and maintain high speed Internet access (such as a T-1 line, cable modem or DSL) and an electronic mail address, and you must keep us informed of this information during the term of the Franchise Agreement. We will have the right to access your computer database at any time, at your expense, and you must provide us with any necessary user IDs and/or passwords for our 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 Equipme
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–25)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees are required to purchase and maintain computer hardware, software, and other equipment as specified by Mr. Sandless. Currently, this includes a Windows 7-based personal computer with at least 2 GB RAM and a 200 GB hard drive, along with a monitor and printer. The estimated initial cost for this computer equipment is approximately $1,600.
Mr. Sandless has the right to mandate updates or replacements to any computer equipment, including both hardware and software components, and franchisees must use the equipment as directed by Mr. Sandless. The Franchise Agreement places no limit on Mr. Sandless's right to require these upgrades or updates, nor does it limit the potential costs associated with them. Neither Mr. Sandless nor its affiliates will provide any maintenance, updates, or upgrades for the computer equipment. The estimated annual cost for maintenance, updating, upgrading, or support contracts for the computer system ranges from $250 to $600.
Furthermore, franchisees must maintain high-speed internet access and an email address, keeping Mr. Sandless informed of this information. Mr. Sandless has the right to access the franchisee's computer database at any time, at the franchisee's expense, and can download all information stored on the equipment, including sales and customer data, without providing compensation. The customer database remains the property of Mr. Sandless. Mr. Sandless also reserves the right to require franchisees to install a "systems backup solution" for off-premises data storage and must be granted access to this backed-up data upon request.
This arrangement gives Mr. Sandless significant control over the franchisee's computer systems and data, and it places the financial burden of maintaining and upgrading these systems entirely on the franchisee. Prospective franchisees should carefully consider the potential ongoing costs and the implications of granting Mr. Sandless access to their business data.