May Face Foundrie or its affiliates condition the license of proprietary software on signing a software license agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
We or our affiliates may condition any license of proprietary software to you, or your use of technology that we or our affiliates develop or maintain, on your signing a software license agreement or similar document that we or our affiliates prescribe to regulate your use of, and our and your rights and responsibilities concerning, the software or the technology. We or our affiliates may charge you a monthly or other fee for any proprietary software or technology that we or our affiliates license to you and for other maintenance and support services that we or our affiliates provide during the term of your Franchise Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 33–43)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie or its affiliates may require franchisees to sign a software license agreement as a condition of licensing proprietary software or using technology developed or maintained by Face Foundrie or its affiliates. This agreement would regulate the franchisee's use of the software or technology, as well as the rights and responsibilities of both the franchisee and Face Foundrie.
This condition allows Face Foundrie to maintain control over its proprietary software and technology, ensuring that franchisees use it in accordance with Face Foundrie's standards and protecting Face Foundrie's intellectual property. It also provides a framework for defining the responsibilities of both parties regarding the software or technology, such as maintenance, support, and data security.
Furthermore, Face Foundrie or its affiliates may charge franchisees a monthly or other fee for the use of proprietary software or technology, as well as for any maintenance and support services provided during the term of the Franchise Agreement. This fee would be in addition to other fees outlined in the FDD, such as the initial franchise fee and ongoing royalty fees. This is a common practice in franchising, as it allows the franchisor to recoup the costs of developing and maintaining proprietary systems and to generate revenue from the use of those systems by franchisees.
Prospective franchisees should carefully review the terms of any software license agreement or similar document required by Face Foundrie or its affiliates. They should also inquire about the specific fees associated with the use of proprietary software or technology and the scope of maintenance and support services provided. Understanding these obligations and costs is crucial for making an informed decision about investing in a Face Foundrie franchise.