Is a Floyds 99 franchisee allowed to copy or reproduce the Program?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- d.
The Franchisee shall not, and shall not allow its employees or agents to: (i) sell, assign, lease, license, market or commercially exploit, in any way, the Program, any component thereof or any data generated by the use of the Program; (ii) disclose or grant access to the Program, any component thereof or any data generated by the use of the Program, to any third party other than one whom the Franchisor has approved in writing and who has agreed in writing with the Franchisor to keep the Program confidential; or (iii) copy or reproduce the Program, any component thereof or any data generated by the use of the Program, in any manner, except for one copy of the Program for normal back-up and operations thereof; provided nothing contained herein shall prohibit the Franchisee from using the data generated by the Program to the extent reasonably necessary to comply with local, state and federal law and for usual and customary business purposes.
- e.
The Franchisee shall keep the Program and any data generated by the use of the Program confidential during and after the term hereof, and shall establish and maintain such security precautions as are prescribed by the Franchisor from time to time to maintain the secrecy of the Program and any data generated by the use of the Program, and to prevent the unauthorized access to or use, disclosure or copying of the Program or any data generated by the use of the Program.
The Franchisee shall cause each of its employees who has access to the Program to execute a written confidentiality agreement in a form prescribed or approved in writing by the Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees are generally prohibited from copying or reproducing the Program, which includes the proprietary computer software, documentation, tangible media, and database file structure used in the operation of the Floyds 99 shop. However, there is a specific exception: a franchisee is allowed to make one copy of the Program for normal back-up and operations. This exception is intended to ensure business continuity in case of technical issues or data loss.
This restriction is in place to protect Floyds 99's intellectual property and maintain the integrity of its systems. Unauthorized copying or reproduction could lead to data breaches, security vulnerabilities, or the dissemination of proprietary information to competitors. The franchisee is also prohibited from allowing employees or agents to copy or reproduce the Program, reinforcing the importance of maintaining strict control over the software.
Furthermore, the franchisee must keep the Program and any data generated by its use confidential both during and after the term of the franchise agreement. They are also required to establish and maintain security precautions prescribed by Floyds 99 to prevent unauthorized access, use, disclosure, or copying of the Program or its data. This includes having employees who have access to the Program sign a written confidentiality agreement. These measures are typical in franchise systems that rely heavily on proprietary software and data management.
In practical terms, a prospective Floyds 99 franchisee needs to understand that the software provided is licensed for their specific use within their franchise location and cannot be distributed, sold, or otherwise exploited. The franchisee must also ensure that their staff is aware of and adheres to these restrictions. Failure to comply with these terms could result in a breach of the franchise agreement and potential legal consequences.