Is a Bonchon franchisee allowed to sublicense the Paytronix software?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Restrictions. Except as specifically permitted in this Agreement, Franchisee shall not (a) use any of Paytronix's Proprietary Information to create any software or other materials (whether or not competitive with or similar to the Software), (b) reverse engineer or otherwise try to discover any source code or underlying ideas or algorithms of the Software, (c) sublicense, transfer or distribute the Software, (d) copy (except for reasonable backup or archive purposes) or modify any Software, (e) alter or remove any proprietary or legal notice contained on or in the Software, or (f) use the Software, or allow the transfer, transmission, export or re-export of all or any part of the Software, in violation of any export control laws or regulations of the United States or any other relevant jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from sublicensing the Paytronix software. The agreement between Paytronix and the franchisee grants a nonexclusive, nontransferable license, meaning the franchisee can use the software but cannot transfer or sublicense it to others.
This restriction is further reinforced by the terms outlined in Item 23, which states that the franchisee shall not sublicense, transfer, or distribute the software. This means the franchisee cannot allow any third party to use the software under their license. This restriction is typical in franchising, as franchisors need to maintain control over their systems and software to ensure consistency and quality across all locations.
For a prospective Bonchon franchisee, this means they must adhere strictly to the terms of the Paytronix Franchisee Service Agreement. They are responsible for ensuring that the software is used only for operating the Hosted Services at their franchised location and that no unauthorized access or distribution occurs. Failure to comply with these terms could result in a breach of the agreement and potential penalties.