Does Floyds 99's approval of a site constitute a warranty of its suitability?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee acknowledges and agrees that the Franchisor's approval of a site and any information provided by the Franchisor regarding the site does not constitute a representation or warranty of any kind, express or implied, as to the suitability of the site for a FLOYD'S 99 Shop.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the franchisor's approval of a site does not constitute a warranty of its suitability for a Floyds 99 shop. The franchisee acknowledges and agrees that the franchisor's approval of a site and any information provided by the franchisor regarding the site does not constitute a representation or warranty of any kind, express or implied, as to the suitability of the site for a Floyds 99 Shop.
This means that while Floyds 99 will review and approve the proposed location, the franchisee is ultimately responsible for determining if the site is appropriate for their business. This is a standard practice in franchising, as the franchisee is in the best position to assess the local market conditions and potential customer base. Floyds 99 does offer assistance in site selection through a designated site selection service provider, including an on-site visit to the market area to assist with specifications for space requirements, build out, and demographics. However, the final decision rests with the franchisee.
Prospective franchisees should conduct their own due diligence and not rely solely on the franchisor's approval when selecting a location. This includes analyzing local demographics, traffic patterns, competition, and other factors that could impact the success of the Floyds 99 shop. Engaging with local real estate professionals and conducting thorough market research are crucial steps in this process. By acknowledging that the franchisor's approval does not constitute a warranty, franchisees accept the responsibility for the site's performance and potential risks.