Can a Floyds 99 franchisee sell or lease the Program or any data generated by it?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees are explicitly prohibited from selling, leasing, or commercially exploiting the Program, its components, or any data generated from it. They also cannot disclose or grant access to the Program or its data to third parties without the franchisor's prior written approval and a written confidentiality agreement with the franchisor. The only exception is using the data to comply with laws or for customary business purposes.
This restriction ensures that Floyds 99 maintains control over its proprietary software and the data it generates, protecting its competitive advantage and the integrity of its system. It also prevents franchisees from profiting independently from the franchisor's intellectual property or potentially compromising sensitive data.
Furthermore, franchisees must keep the Program and its data confidential during and after the franchise term, adhering to security precautions set by Floyds 99. Employees with access to the Program must also sign confidentiality agreements. This comprehensive approach underscores the importance of data security and confidentiality within the Floyds 99 franchise system.
In addition to the Program, Floyds 99 retains ownership of all customer data. Franchisees are only allowed to use this data as necessary to operate their Floyds 99 shop, unless they receive prior written approval from Floyds 99. They cannot sell, transfer, sublicense, or share customer data with third parties without approval, unless the third party is a service provider bound by similar confidentiality obligations.