Can a Floyds 99 franchisee sell or lease the Program to a third party?
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 Floyds 99's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from selling, leasing, or otherwise commercially exploiting the Program to third parties. The term "Program" refers to the software and systems used to operate the Floyds 99 franchise.
Specifically, the franchisee cannot sell, assign, lease, license, market, or commercially exploit the Program, any of its components, or any data generated by its use. Furthermore, franchisees are not allowed to disclose or grant access to the Program to any third party unless the franchisor has given prior written approval and the third party has agreed in writing to keep the Program confidential.
This restriction is typical in franchising, as franchisors want to maintain tight control over their proprietary systems and data to protect their brand and ensure consistency across all franchise locations. This also prevents franchisees from potentially competing with the franchisor or sharing sensitive information with competitors. A Floyds 99 franchisee must adhere to these restrictions to remain in compliance with the franchise agreement.