Is the Floyds 99 software license granted to franchisees exclusive or nonexclusive?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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").
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the software license granted to franchisees is nonexclusive. Specifically, Floyds 99 grants franchisees a "nonexclusive, nontransferable, fully paid license" to use the proprietary computer software programs (the "Software") for the term of the Franchise Agreement. This means that Floyds 99 retains the right to license the same software to other franchisees or use it themselves.
For a prospective franchisee, this nonexclusive license means that Floyds 99 can offer the same software to other franchisees, including those in nearby territories. This is a fairly standard practice in franchising, as it allows the franchisor to maintain control over its systems and ensure consistency across all locations. The franchisee cannot transfer the software license to another party.
Furthermore, Floyds 99 retains ownership of any improvements or modifications made to the Licensed Methods, which includes the software. This ensures that any advancements or changes to the software benefit the entire Floyds 99 system rather than just an individual franchisee. The franchisee is granted a license to use the software for the duration of the franchise term, and Floyds 99 agrees to provide updates during this term.