Is the license granted to the Subfranchisor under the Anago NBDS License Agreement transferable?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term, and subject to the terms of this Agreement, the Franchisor hereby agrees to: (a) grant Subfranchisior access to a Software program currently known as IGAS, an internet-based Software currently known as AnagoCloud, and an internet-based application currently known as Anago CleanSource; (b) furnish Subfranchisior with certain Related Materials (as later defined in this Agreement) in support of the Software; (c) grant the Subfranchisior a nontransferable and nonexclusive license to use the Software and Related Materials which are described pursuant to any Schedule to this Agreement signed by both parties ("Schedule"); and (d) provide Software maintenance, all as described in this Agreement.
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 is nontransferable. Specifically, Anago grants the Subfranchisor a "nontransferable and nonexclusive license to use the Software and Related Materials".
This means that the Subfranchisor cannot transfer the rights to use the software and related materials to another party. This restriction is in place to ensure that Anago maintains control over who is using their proprietary software and materials.
This condition is important for prospective Subfranchisors to understand, as it limits their ability to sell or assign the license to a third party. The license remains with the original Subfranchisor and cannot be transferred, even if the Subfranchisor sells their business.