What is the 'Assignee' referring to in the Floyds 99 Conditional Assignment of Lease agreement?

According to the 2025 Floyds 99 Franchise Disclosure Document, the "Assignee" in the Conditional Assignment of Lease agreement refers to Floyd's 99 Franchising, LLC. This agreement outlines the conditions under which the rights and responsibilities of the lease can be transferred from the franchisee (Assignor) to Floyds 99 Franchising, LLC (Assignee).

The Conditional Assignment of Lease is put in place as a requirement of the Franchise Agreement. The franchisee, as the Assignor, assigns their rights to the lease to Floyds 99. However, this assignment is conditional and only becomes effective under specific circumstances, such as the franchisee defaulting on the lease or franchise agreement, becoming insolvent, discontinuing operations, or failing to renew the franchise agreement or lease. Until one of these events occurs and Floyds 99 exercises its rights, the franchisee remains responsible for fulfilling the lease obligations.

Floyds 99, as the Assignee, has the right to receive notices of default from the landlord and has a period to cure any default, potentially assuming the lease. The agreement also ensures that the franchisee cannot surrender, amend, modify, or terminate the lease without Floyds 99's written consent. This arrangement protects Floyds 99's interests by allowing them to maintain control over the location and ensure continued operation of a Floyds 99 shop, even if the original franchisee faces difficulties.

This conditional assignment provides Floyds 99 with a mechanism to step in and take over the lease to ensure business continuity and protect the brand's presence in that location. For a prospective franchisee, this means that Floyds 99 has a vested interest in the success of each location and has taken steps to mitigate potential disruptions caused by franchisee default or business failure.