Buying a franchise: what happens if the till system goes down?

When you join a franchise network, you are not just buying the right to use a brand. You often also commit to using a shared till system, ordering platform or booking application. If you cannot trade without them, their availability directly affects your revenue. Before signing, a polished software demonstration is therefore not enough: you need to know how the outlet will operate during a failure and who will get it back to normal.

1. Map out what your sales will depend on

Ask the franchisor for a list of mandatory applications and their suppliers. For each one, request an explanation of exactly what it does and whether an outage would stop the whole outlet from operating or affect only one service. The till may still work while its connection to stock management or orders fails.

Also ask about dependencies that are not apparent in a standard presentation. Does the application need a permanent internet connection? Does it check the licence against a head office server every time you log in? Can you accept payments if the link to the card terminal fails? Can you access orders in progress if the central account is unavailable?

Request a practical demonstration of the fallback mode. A simple assurance that the system can work offline is not enough. Check which functions actually remain available and what happens when the connection is restored. It is particularly important to prevent duplicate orders, lost payments and incorrect stock deductions.

2. Establish who is actually giving you a guarantee

The Czech Republic has no specific franchising law. A franchise agreement is generally a contract not specifically defined by statute, entered into under Section 1746(2) of Act No. 89/2012 Coll., the Civil Code. Depending on their substance, software-related obligations are governed by general contract rules and, where applicable, licensing rules and Act No. 121/2000 Coll., the Copyright Act.

Czech law also imposes no specific requirement to provide prospective franchisees with a standardised franchise disclosure document. General rules on pre-contractual dealings do apply, however. You should therefore actively request the technical terms rather than assume that you will automatically receive the full documentation.

The key is to distinguish between three possible arrangements: the franchisor provides the system directly; you enter into a contract with an external supplier; or head office merely arranges access under its own contract. In the last case, you may have no direct contractual claim against the supplier.

For every mandatory service, it must be clear who is responsible to you for providing it. If the franchisor refers you to the supplier and the supplier refers you back to head office, resolve that gap before signing. Also request any terms you will be asked to accept when you first activate your account.

3. Agree measurable commitments for handling outages

A general promise of technical support does not tell you when help will be available or how quickly you will be able to resume trading. Include specific service standards in the contractual documentation, often referred to as an SLA, or service level agreement.

In particular, check:

• Support hours: do they match the outlet’s opening hours, including weekends?
• Fault severity: does a complete halt to sales take priority over a minor display error?
• Response and recovery: does the contract distinguish between acknowledging a fault report and putting a workaround or full solution into operation?
• Planned downtime: how much notice must be given, and when may it take place?
• Escalation: who can you call if the usual support team does not respond?

If availability is agreed as a percentage, the contract must also explain how it is measured and which exceptions apply. A broad exclusion covering all problems caused by external suppliers can significantly weaken the promised service level. Make sure you retain the right to obtain a record of when a fault began, how it developed and when it was resolved.

4. Prepare a lawful and workable fallback procedure

The backup procedure must not exist only in the head of an experienced member of the head office team. Request written instructions for staff covering how to take an order, record a sale, issue the required receipt or other document, and enter the information into the system later. The procedure must comply with the accounting, tax and any other obligations relevant to your particular business.

Check whether you are allowed to use a backup connection, a different device or a temporary solution outside the standard application. A requirement to use only approved equipment should not make the fallback procedure impossible in practice. Agree any necessary exceptions in advance, not during a Saturday breakdown.

Ask about backups too: who makes them, how often, and whether restoration is actually tested. Distinguish between the time needed to restore the system and the amount of data that could be lost. A restored till without the latest orders does not necessarily mean the business is back up and running.

5. Allocate the financial consequences of a failure

A reduction in the monthly software fee may not cover spoiled goods, additional work or lost profits. Check liability caps, exclusions of compensation for losses and any clauses stating that a fee reduction is your sole remedy. Have a lawyer assess their effect and the limits imposed by law.

Agree who will pay for an engineer’s call-out, replacement equipment and data recovery. For repeated serious outages, seek a remedial action plan and a clear process for approving an alternative solution. How costs are shared may depend on the cause of the failure, so you also need a way to establish and document that cause.

Practical takeaway: Before buying a franchise, ask for a demonstration of how sales are handled during an outage, identify the party contractually responsible, and agree recovery arrangements and costs. A mandatory system should support the outlet, not bring it to a standstill with no fallback procedure.