Even in the most simplistic franchise businesses, such as a home based franchise business model the franchisor must have stipulations of the franchise agreement concerning the use, purchase and set up all the franchisee's computer system. It is for this reason that in our franchise system I decided to add a clause into the franchise agreement, which address the computer system issue with regards to the initial setup of this computer system. Below is the clause I put into our franchise agreements;

3.30 Computer System

Within sixty calendar (60) days of signing the Franchise Agreement Franchisee must obtain a computer system meeting Franchisor's specifications. Franchisee will be required to update Franchisee's computer system when Franchisor reasonably requires. Franchisee must establish Internet access and an electronic mail (e-mail) account within fifteen calendar (15) days after Franchisee obtains their specified computer system. Franchisee must no

tify Franchisor of Franchisee's electronic mail account address via e-mail within five calendar (5) days after Franchisee obtains this address.

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If you run or own a franchise system which sets up home-based businesses in franchises you would be well advised to discuss this issue with a bona fide franchise attorney who specializes in franchising. I hope you will consider this in 2006.

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