Is Floyds 99 allowed to delegate its obligations under the agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Assignee shall have the right to assign any of its rights, duties or obligations under this Agreement to an affiliate or designee of Assignee.
This Agreement is fully assignable by the Franchisor and shall inure to the benefit of any assignee or other legal successor in interest, and the Franchisor shall in such event be fully released from the same, provided no assignment shall be made except to an assignee who, in the Franchisor's good faith judgment, is willing and able to assume the Franchisor's obligations 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, Floyds 99 Franchising, LLC has the right to assign its rights, duties, or obligations under the agreement to an affiliate or designee. This means that Floyds 99 can transfer its responsibilities and entitlements under the Franchise Agreement to another party they choose. This is a common practice in franchising, allowing the franchisor flexibility in managing its business and potentially facilitating mergers, acquisitions, or internal restructuring.
However, the Rider to the Franchise Agreement for the State of New York provides additional stipulations regarding assignment. Specifically, the agreement is fully assignable by Floyds 99, and Floyds 99 will be released from the agreement if the assignee is willing and able to assume Floyds 99's obligations in good faith. This clause protects the franchisee by ensuring that any new franchisor is capable of fulfilling the original franchisor's commitments.
For a prospective franchisee, this means that while the brand and system of Floyds 99 should remain consistent, the actual entity they contract with could change. It's important to consider the reputation and financial stability of any potential assignee. Furthermore, franchisees in New York have some assurance that the new franchisor must be willing and able to take on the obligations of the agreement. Franchisees should seek legal counsel to fully understand their rights and protections in the event of an assignment.