What action must the Floyds 99 developer take if an owner dies?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) In the event of Developer's death or disability or the death or disability of one of Developer's owners, such persons interest in this Agreement or in Developer is not assigned as required under this Agreement;
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, in the event of the death of a developer or one of the developer's owners, the interest in the agreement or the developer entity must be assigned as required under the agreement.
This means that if a developer or an owner of the developer entity dies, the rights and obligations associated with the development agreement must be transferred to another party who meets the franchisor's requirements. The specific procedures and qualifications for this assignment would be detailed elsewhere in the agreement, likely in Article 8, which covers transfer provisions.
Failure to properly assign the interest as required by the agreement can result in the termination of the development agreement by Floyds 99. This highlights the importance of having a succession plan in place to ensure the continued operation and compliance of the development agreement in the event of death or disability.