Is the Floyds 99 franchisee allowed to assign the software license?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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, franchisees are granted a nonexclusive and nontransferable license to use the proprietary software provided by the company. This means that while franchisees have the right to use the software for their Floyds 99 shop's operations, they cannot transfer or assign this license to another party. Floyds 99 also agrees to provide updates for the Program for the term of the license.
This restriction ensures that Floyds 99 maintains control over who uses their software and how it is used, protecting their intellectual property and maintaining consistency across all franchised locations. The software must be installed on equipment designated by Floyds 99 and can only be operated by the franchisee and their employees, further limiting its use.
Additionally, franchisees are prohibited from selling, assigning, leasing, licensing, marketing, or commercially exploiting the software or any data generated by it. Access to the software and its data is restricted to approved third parties who have a written confidentiality agreement with Floyds 99. These measures are in place to safeguard the software's confidentiality and prevent unauthorized use or disclosure, both during and after the franchise term. This is a fairly standard practice in franchising, as franchisors need to protect their systems and data.