Who bears the cost of changing the licensed software if All Team requires it?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
y computer software program licensed or such other software as ATFC may designate, including any modifications, additions or enhancements to such software ("Software") during the term of this Agreement and subject to the limitations on use and other requirements set forth in this Section VII.F. FRANCHISEE understands that ATFC has the right to change the Software at any time in ATFC's sole discretion. In such event, FRANCHISEE may be required to change the licensed software FRANCHISEE uses, FRANCHISEE will do so at FRANCHISEE's sole cost and expense and may be required to sign new documentation to license the right to use the new software.
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- FRANCHISEE and its employees will use the Software for the operation of the Agency in accordance with the terms of this Agreement and the terms, conditions and procedures set forth in the Manual or otherwise disclosed to FRANCHISEE, which may change from time to time. ATFC may require FRANCHISEE to modify, enhance and/or replace all or any part of the Software at any time and at FRANCHISEE's sole expense.
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Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchisee is responsible for the costs associated with changes to licensed software. Specifically, All Team has the right to change the software at any time, and if such a change requires the franchisee to update the licensed software they use, the franchisee will bear the sole cost and expense of doing so. The franchisee may also be required to sign new documentation to license the right to use the new software.
All Team may also require the franchisee to modify, enhance, or replace all or any part of the software at any time, and again, this will be at the franchisee's sole expense. This includes costs related to licensing, installation, operation, maintenance, and upgrading the software. The franchisee also pays a weekly Technology Fee of $100, which covers items such as remote access, licenses, system support, and the use and maintenance of the software. However, this fee does not cover the cost of changes to the software itself.
This arrangement means that franchisees must be prepared to invest further in technology upgrades and changes as directed by All Team. While the weekly technology fee covers ongoing maintenance and support, significant software changes or upgrades will require additional expenditure. This is a common practice in franchising, where franchisors need to maintain system-wide consistency and may require franchisees to adopt new technologies, but the financial burden on the franchisee can be substantial and unpredictable.