Can the All Team franchisee assign the software license?
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.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the software license granted to the franchisee is nonexclusive, nontransferable, nonassignable, and non-sublicensable. This means that the franchisee cannot transfer or assign the software license to another party, except in connection to a transfer of the entire franchise agreement.
All Team retains the right to change the software at any time, and the franchisee may be required to use new software at their own cost, potentially needing to sign new licensing documentation. The franchisee is responsible for all costs associated with the software, including licensing, installation, maintenance, and upgrades. Additionally, All Team has unlimited rights to remotely access the software and use the information contained within it.
These restrictions are typical in franchising, as franchisors like All Team need to maintain control over their proprietary systems and ensure consistent operations across all franchise locations. The franchisee's inability to transfer the software license protects All Team's intellectual property and prevents unauthorized use of the software. Prospective franchisees should be aware of these limitations and factor in the potential costs of software upgrades and maintenance when evaluating the All Team franchise opportunity.