What agreement regarding training must a proposed transferee make to transfer a Floyds 99 development agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.2 Pre-Conditions to Developer's Transfer.
Developer shall not engage in a transfer, as defined above, unless Developer obtains Franchisor's written consent and complies with the following requirements:
(b) Agreement by the proposed transferee to satisfactorily complete the initial training program described in this Agreement;
(e) The proposed transferee shall have provided information to Franchisor sufficient for Franchisor to assess the proposed transferee's business experience, aptitude and financial qualification, and Franchisor shall have ascertained that the proposed transferee meets such qualifications;
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, a key precondition for transferring a development agreement is that the proposed transferee must agree to satisfactorily complete the initial training program. This requirement ensures that any new developer taking over an existing agreement is properly equipped with the knowledge and skills necessary to uphold Floyds 99's standards and operational methods.
This stipulation is in place to maintain consistency and quality across all Floyds 99 locations. The initial training program covers various aspects of running a Floyds 99 shop, including operations, service standards, and brand-specific practices. By requiring the transferee to complete this program, Floyds 99 aims to minimize disruptions and ensure a smooth transition in the management of the developed shops.
For a prospective franchisee, this means that if they plan to sell their development rights, the potential buyer must be willing to undergo the training provided by Floyds 99. This could impact the pool of potential buyers, as some may not want to invest the time and resources required for training. Conversely, it assures the franchisor that the new developer is committed to maintaining the brand's standards. It is also important to note that the transferee must meet Floyds 99's standards regarding business experience, aptitude, and financial qualifications.