Is a Floyds 99 franchisee allowed to patent or copyright the Program?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
reserves the right to charge the Franchisee for all expenses incurred by the Franchisor in connection with such Alteration including the Franchisor's travel, lodging, living expenses, telephone charges and other identifiable expenses (such as construction and materials), plus a fee based on the time spent by each of Franchisor's employees or agents on behalf of the Franchisee.
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").
b. Except with the prior written consent of the Franchisor, the Program shall not be: (i) operated by persons other than the Franchisee and employees of the Franchisee; (ii) operated on more than one computer at a time; (iii) operated on equipment other than the Designated Equipment; or (iv) operated at locations other than the Franchised Location.
c. The Program shall be used only to perform information processing in the Franchisee's operation of the FLOYD'S 99 Shop and shall not be used to perform information processing for any other person, entity or business.
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.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees are not permitted to sell, assign, lease, license, market, or commercially exploit the Program, which includes the proprietary computer software, documentation, and tangible media used in the Floyds 99 shop's operation. They also cannot disclose or grant access to the Program to any third party without the franchisor's written approval and a confidentiality agreement.
The Floyds 99 franchisee is explicitly prohibited from copying or reproducing the Program, except for one backup copy for normal operations. Franchisees must keep the Program confidential during and after the franchise term, adhering to security precautions to prevent unauthorized access, use, disclosure, or copying. All employees with access to the Program must sign a confidentiality agreement.
These restrictions ensure that Floyds 99 maintains control over its proprietary software and systems, protecting its intellectual property and maintaining consistency across all franchise locations. This is a common practice in franchising, where franchisors need to protect their brand and operational methods.
In practical terms, a prospective Floyds 99 franchisee should understand that they are granted a limited license to use the Program solely for operating their Floyds 99 shop and cannot claim any ownership or intellectual property rights over it. Any improvements or modifications to the barbershop, whether copyrightable or not, become part of the Licensed Methods and benefit the franchisor.