Does the Floyds 99 franchise agreement specify that the software license is fully paid?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
16. SOFTWARE LICENSE
- 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 the 2025 Floyds 99 Franchise Disclosure Document, the franchise agreement specifies that the software license granted to the franchisee is fully paid. Specifically, Floyds 99 grants the franchisee a nonexclusive, nontransferable, fully paid license to use the proprietary computer software programs (the "Software") for the term of the franchise agreement. Floyds 99 also agrees to provide updates for the Program for the term of the agreement.
This means that franchisees do not have to make additional payments for the software license during the term of the agreement, beyond the initial franchise fees and other ongoing fees. However, franchisees are responsible for obtaining compatible computer hardware for operating the point-of-sale system and software, and some of this hardware may be required to be purchased from Floyds 99, its affiliates, or designated suppliers. Franchisees are also responsible for all maintenance costs associated with the point-of-sale system and any computer hardware or software.
While the initial software license is fully paid, Floyds 99 reserves the right to require franchisees to purchase new and upgraded computer hardware components and software, including proprietary software, with 30 days' prior written notice. These proprietary software programs may be purchased from Floyds 99 or its affiliates. Franchisees must also enter into a maintenance agreement with a designated or approved third-party supplier, and they are responsible for all maintenance costs. Additionally, franchisees may be required to obtain information technology services and dedicated web services infrastructure from Floyds 99's designated or approved supplier.