Is the All Team software license exclusive?
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, the software license granted to franchisees is nonexclusive. The FDD specifies that All Team grants franchisees a "nonexclusive, nontransferable, nonassignable and non sublicensable license" to use its proprietary computer software during the term of the agreement. This means that All Team retains the right to license the same software to other franchisees or even use it themselves.
This nonexclusive arrangement has several implications for franchisees. It means All Team can license the software to other franchisees, including those in the same market area. It also allows All Team to use the software itself, potentially in competition with its franchisees. While the franchisee must bear the costs of licensing, installation, maintenance, and upgrades, All Team retains control over the software and can modify or change it at any time, potentially requiring the franchisee to adopt new software at their own expense.
Furthermore, the franchisee's rights to the software are strictly limited. They cannot copy, modify, or distribute the software or its documentation. They also cannot attempt to reverse engineer the software or allow unauthorized access to it. The franchisee acknowledges that they have no ownership interest in the software's intellectual property rights. This ensures that All Team maintains complete control over its proprietary software, while the franchisee only has a limited right to use it for operating their agency.