Does the Floyds 99 franchise agreement state that the software license is for a specific term?
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 software license granted to the franchisee is indeed for a specific term. Floyds 99 will license proprietary computer software to the franchisee for use in their shop. This includes any modifications, revisions, documentation, tangible media, and the database file structure.
The license granted to the franchisee is nonexclusive, nontransferable, and fully paid. Floyds 99 also agrees to provide updates for the program for the term of the license. The software must be installed on computer equipment that Floyds 99 designates as meeting its specifications.
This means that a franchisee's right to use the software is tied to the length of the franchise agreement. Upon expiration or termination of the franchise agreement, the franchisee would no longer be authorized to use the software. This is a fairly standard practice in franchising, as it ensures that only active franchisees in good standing are utilizing the franchisor's proprietary systems.