Can the license granted in the Anago agreement for any Software and Related Materials be terminated?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Term of License. The license granted in this Agreement for any Software and Related Materials will be in effect for the Term (so long as the Subfranchise Rights Agreement is in full force and effect), unless sooner terminated in accordance with this Agreement.
(j) Termination. The license granted under this Agreement for any Software terminates at the expiration or termination of this Agreement, or as otherwise provided in this Agreement.
Upon expiration or termination of this Agreement, the Subfranchisor will immediately deliver to the Franchisor all Software and Related Materials.
This requirement will apply to all copies in any form including translations, compilations or partial copies.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the license granted to the subfranchisor for the Software and Related Materials can be terminated under certain conditions. The license is effective for the term of the agreement, provided the Subfranchise Rights Agreement remains in full force. However, the license can be terminated sooner if it aligns with other termination provisions outlined in the agreement.
The Anago agreement specifies that the license for the Software terminates upon the expiration or termination of the agreement itself, or as otherwise detailed within the agreement. Upon termination or expiration, the subfranchisor is obligated to immediately return all Software and Related Materials to Anago, including all copies, translations, compilations, or partial copies.
Furthermore, Anago retains the right to terminate all rights granted to the subfranchisee under the agreement, including the software license, immediately upon notice if the subfranchisee defaults. Events of default include ceasing contracted services for more than 3 days without consent, failure to comply with mandatory standards, a felony conviction of the franchisee or related parties, denial of inspection rights, harmful conduct, unauthorized transfer of rights, breaches of confidentiality or noncompetition, maintaining false records, misuse of proprietary property, receiving three or more default notices in 12 months, or losing service to all Anago contracts without corrective measures.