Is the license granted to Belocal by the franchisee a perpetual license?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. In the event that the foregoing provisions of this Section 5.T. are found to be invalid or otherwise unenforceable, Franchisee and Franchisee's Principals hereby grant to Franchisor a worldwide, perpetual, non-exclusive, fully paid license to use and sublicense the use of the content to the extent such use or sublicense would, absent this Agreement, directly or indirectly, infringe Franchisee's or their rights therein.
- U. Improvements. If Franchisee, Franchisee's Independent Staff, or Principals develop any new concept, process, or improvement in the operation or promotion of the Franchised Business ("Improvement"), Franchisee agrees to promptly notify Franchisor and provide Franchisor with all necessary related information, without compensation. Any such Improvement shall become Franchisor's sole property, and Franchisor shall be the sole owner of all related patents, patent applications, and other intellectual property rights. Franchisee and Franchisee's Principals hereby assign to Franchisor any rights Franchisee or they may have or acquire in any Improvement, including the right to modify any
Improvement, and waive and/or release all rights of restraint and moral rights therein and thereto.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, in the event that certain provisions regarding intellectual property rights are deemed invalid or unenforceable, the franchisee grants Belocal a license to use and sublicense content. This license is worldwide, perpetual, non-exclusive, and fully paid.
Additionally, if a Belocal franchisee or their staff develops any improvements to the franchised business, these improvements become Belocal's sole property. The franchisee assigns all rights they may have in such improvements to Belocal. Should the assignment of rights be deemed invalid or unenforceable, the franchisee grants Belocal a worldwide, perpetual, non-exclusive, fully paid license to use and sublicense any improvement.
Furthermore, N2 grants the franchisee a license to use all Intellectual Property Rights in the Deliverables free of additional charge and on a non-exclusive, worldwide, non-transferable, non-sublicensable, fully paid-up, royalty-free and perpetual basis, solely to the extent necessary to enable the Franchisee to make reasonable use of the Deliverables and the Services.