Does Floyds 99's approval of a lease constitute a guarantee of the location's suitability or profitability?

According to Floyds 99's 2025 Franchise Disclosure Document, the franchisor's approval of a lease or purchase agreement does not constitute a recommendation, endorsement, or guarantee of the location's suitability or profitability. This means that while Floyds 99 may review and approve the lease for a potential franchise location, this approval is for their own benefit and does not ensure that the location will be successful or meet the franchisee's expectations. The franchisee is responsible for independently verifying the suitability of the location.

Floyds 99 emphasizes that the franchisee should take all necessary steps to determine if the location, lease, or purchase agreement is acceptable to them. This includes conducting their own due diligence and not relying solely on the franchisor's approval. The franchisee bears the responsibility of assessing the location's potential and negotiating lease terms that are favorable to their business.

This is a common practice in franchising, as franchisors often want to ensure that the lease terms protect their brand and interests, but they cannot guarantee the financial success of each location. Prospective Floyds 99 franchisees should carefully consider this and conduct thorough research before committing to a specific location. They should seek professional advice from real estate experts and financial advisors to assess the location's potential and negotiate favorable lease terms.