What constitutes 'Designated Equipment' for the Floyds 99 software?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.1 Grant of License. The Franchisor will license one or more proprietary computer software programs (the "Software") to the Franchisee for use in the operation of the FLOYD'S 99 Shop, including any modifications or revisions thereto, all documentation (other than the Software) related to the Software, the tangible media upon which such programs are recorded and the database file structure thereof (collectively, the "Program"). The Franchisor hereby grants to the Franchisee a nonexclusive, nontransferable, fully paid license to use the Program (the "License") for the term hereof, and agrees to provide updates for the Program for the term hereof. The parties agree as follows:
- a. The Program shall be installed on the computer equipment designated by the Franchisor as meeting its specifications (the "Designated Equipment").
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the proprietary computer software programs (the "Software") will be installed on computer equipment designated by Floyds 99 as meeting its specifications (the "Designated Equipment"). This Designated Equipment is essential for operating the Floyds 99 shop.
This means that franchisees must use specific computer hardware that Floyds 99 has approved to run the required software. Floyds 99 ensures that the software operates correctly and efficiently by mandating the use of Designated Equipment. The franchisee is granted a nonexclusive, nontransferable, fully paid license to use the Program for the term of the agreement and agrees to provide updates for the Program for the term of the agreement.
For a prospective franchisee, this implies that they will not have the freedom to choose their own computer hardware. Instead, they must invest in the specific equipment that Floyds 99 has determined to be compatible with its software. This ensures uniformity and compatibility across all Floyds 99 locations, but it may also mean higher initial investment costs if the Designated Equipment is more expensive than other alternatives.
It is important for potential franchisees to understand the specifications and costs associated with the Designated Equipment before signing the franchise agreement. They should also inquire about the process for upgrading or replacing the equipment in the future, as Floyds 99 retains the right to require new and upgraded computer hardware components and software with prior written notice.