According to the Floyds 99 Development Agreement, what is Exhibit II?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer shall promptly provide Franchisor with a written notification if the information contained in the Statement of Ownership changes at any time during the term of this Agreement and shall comply with the applicable transfer provisions contained in Article 8 herein and in the Franchise Agreement. In addition, if Developer is an entity, all of the owners of Developer shall sign the Guaranty and Assumption of Developer's Obligations attached hereto as Exhibit II.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Exhibit II of the Development Agreement refers to the Guaranty and Assumption of Developer's Obligations. This exhibit is significant because it outlines the personal guarantees required from the owners of the developer entity.
Specifically, if the Floyds 99 developer is a business entity rather than an individual, all owners of that entity must sign Exhibit II. This means they are personally guaranteeing the developer's obligations under the Development Agreement.
This requirement is a standard practice in franchising, as it ensures that the franchisor has recourse to the personal assets of the business owners if the developer fails to meet its financial or contractual obligations. Prospective Floyds 99 developers should carefully review this exhibit and understand the full extent of their personal liability before signing the Development Agreement.