Can I require franchisees to adopt new technology mid-term?

Often yes for systems contemplated by the agreement, but mandating expensive new platforms or fees mid-term is safer when the agreement and FDD already provide for it.

Who owns customer data in a franchise?

Whoever the agreement says — which is why it should say so. Many franchisors claim ownership or shared use and require return of the data at termination.

Do online and delivery sales count toward royalties?

They should, but only if the agreement makes that clear. Silence on e-commerce is a common and costly gap in older contracts.

Should technology rules go in the agreement or the manual?

Put the framework and anything affecting fees or rights in the agreement; use the manual for detailed, frequently changing specifications. Reidel Law Firm helps franchisors modernize their franchise agreements and FDDs for data, e-commerce, and required technology — without tripping the rules on mid-term changes. Talk to a franchise attorney →

Updating Your Franchise Agreement for Technology

Update your franchise agreement for technology by addressing four things directly: who owns customer data, how online and delivery sales affect territory, what software you can require, and how brand IP is used online. Most older franchise agreements were drafted before apps, third-party delivery, and cloud point-of-sale existed. When the contract is silent, every new tool becomes a negotiation — or a dispute. Naming these issues turns ambiguity into enforceable terms.

Why Technology Belongs in the Agreement, Not Just the Manual

Franchisors often try to handle technology entirely through the operations manual,