Can the All Team franchisee sublicense the software?
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.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are specifically prohibited from sublicensing the software provided to them. The document states that All Team grants franchisees a "nonexclusive, nontransferable, nonassignable and non sublicensable license" to use the software. This restriction is in place for the duration of the franchise agreement and applies to any modifications, additions, or enhancements made to the software.
This means that franchisees can only use the software for their own agency operations and cannot allow any other entity or individual to use it, except for their authorized employees. The franchisee also cannot sell, lease, assign, or otherwise transfer their license to use the software, except in connection with a transfer of the entire franchise agreement.
The FDD also states that All Team retains the right to change the software at any time and may require franchisees to update their software at their own expense. Franchisees are responsible for all costs associated with the software, including licensing, installation, operation, maintenance, and upgrades. This ensures that All Team maintains control over its proprietary software and how it is used within the franchise system.
Given this explicit prohibition, prospective All Team franchisees should understand that they will not have the ability to sublicense the software to any third party. Any unauthorized use or distribution of the software could result in a breach of the franchise agreement and potential legal consequences.