Can the All Team franchisee transfer the software license to another party?
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 generally non-transferable. Specifically, All Team grants a "nonexclusive, nontransferable, nonassignable and non sublicensable license" to use their proprietary computer software. This means a franchisee cannot independently sell, lease, assign, sublicense, or otherwise transfer their rights to use the software to another party.
However, there is an exception: the franchisee can transfer the software license in connection with a transfer of the entire Franchise Agreement, subject to All Team's approval. This implies that if a franchisee sells their All Team franchise to a new owner, the software license can be transferred as part of that sale, provided All Team approves the transfer of the franchise itself. All Team retains significant control over who can operate an All Team franchise and use its associated software.
This restriction is typical in franchising, as franchisors like All Team want to maintain control over their brand standards and intellectual property. By limiting the transferability of the software license, All Team ensures that only authorized and properly trained franchisees are using their systems. A prospective franchisee should carefully consider these restrictions and understand the process for transferring their franchise if they plan to sell their business in the future.