Does the All Team franchise agreement specify any geographic limits related to software usage?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ATFC hereby grants to FRANCHISEE a nonexclusive, nontransferable, nonassignable and non sublicensable license to, use the proprietary 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.
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.
ATFC or its affiliates will host some portion or all of the Software on ATFC's corporate servers at ATFC's sole and absolute discretion.
In the event ATFC or its affiliates provide any hosting services, ATFC or its Affiliates reserve the right to do so according to terms and conditions ATFC or its affiliates may establish, including limiting ATFC's liability for the security of data transmitted over the Internet and establishing limitations on data storage size and the periodic purging of FRANCHISEE's data required as a result thereof.
FRANCHISEE acknowledges that the only rights in the Software granted by ATFC to FRANCHISEE are those specified in this Section VII.F.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to the 2025 All Team Franchise Disclosure Document, the franchise agreement does not explicitly define geographic limits regarding the usage of the software provided to franchisees. However, the agreement does state that the franchisee and its employees will use the software for the operation of the agency, implying that the software license is tied to the specific franchised location. The agreement specifies that the license granted to the franchisee is nonexclusive, nontransferable, nonassignable, and non-sublicensable, suggesting that the software is intended for use only at the franchisee's designated All Team agency.
All Team retains the right to modify, enhance, or replace the software at any time, and the franchisee is responsible for the costs associated with these changes. The franchisor also has the discretion to host the software on its corporate servers and can establish terms and conditions for these hosting services, including limitations on data storage and security. These stipulations ensure All Team maintains control over the software and its usage within the franchise network.
While the FDD does not explicitly prohibit using the software outside of the franchisee's territory, the terms and conditions surrounding the software license and usage suggest that it is intended for use within the scope of operating the franchised All Team agency. A prospective franchisee should seek clarification from All Team regarding any potential restrictions on software use outside of their designated territory to fully understand the scope of their license and operational limitations.