Is the Aerus software license assignable?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, for and in consideration of the premises and promises set forth herein and in the Franchise Agreement, and other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, Licensor and Licensee agree as follows:
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- Licensor hereby grants to Licensee a nonexclusive, nonassignable license to use the computer programs (including all revisions, modifications and enhancements thereto), in object code form (the "Software"), together with their related user and operating documentation, if any (the "Documentation") from time to time made available to Licensee under the Franchise Agreement. Licensee must provide, at Licensee's sole expense, the hardware, software and Internet or telecommunication connections meeting or exceeding the minimum operating specifications for the Software, as Licensor determines from time to time.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the software license granted to franchisees is generally not assignable. Specifically, the document states that franchisees cannot assign any rights under the Software License without obtaining prior written consent from Aerus. This restriction applies to any type of assignment, whether it occurs through legal operation or any other means.
This requirement means that if a franchisee wishes to transfer their rights to use the software to another party, such as in the event of selling the franchise, they must first seek and receive approval from Aerus. This provision allows Aerus to maintain control over who is using their proprietary software and ensures that any new user meets their standards and requirements.
For a prospective Aerus franchisee, this condition highlights the importance of understanding the terms of the Software License Agreement and the need to communicate with Aerus regarding any potential transfer of rights. It is essential to factor this requirement into any future business plans involving the transfer of the franchise.
In the franchise industry, it is common for franchisors to retain control over the assignment of licenses and agreements to protect their brand and ensure consistent quality and standards across all franchise locations. This clause in the Aerus Software License Agreement aligns with this common practice.