Is the Conditional Assignment of Lease a requirement for receiving rights under the Floyds 99 Franchise Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Additionally, the Franchise Agreement requires that the Lease contain certain
provisions which, to the extent not incorporated into the Lease, are set forth herein.
Landlord hereby consents to the terms and provisions of this Agreement, and to the conditional assignment of the Lease to Assignee.
Landlord agrees that after the Effective Date, Assignee may (i) enter into a sublease with any FLOYD'S 99 franchisee without Landlord's further consent, or (ii) further assign the Lease to a person, firm or corporation who shall agree to assume the tenant's obligations under the Lease and who is reasonably acceptable to Landlord.
Landlord further agrees that upon the occurrence of any such assignment, Assignee shall have no further liability or obligation under the Lease as Assignee, tenant or otherwise, and that concurrent with such assignment, Landlord will enter into a replacement Conditional Assignment of Lease Agreement by and between Assignee and the new tenant.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Franchise Agreement requires that the lease for the premises contain certain provisions. To the extent that these provisions are not already incorporated into the lease, they are set forth in the document.
Specifically, the landlord consents to the terms and provisions of the agreement, including the conditional assignment of the lease to the assignee. The landlord also agrees that after the effective date, the assignee may enter into a sublease with any Floyds 99 franchisee without further consent from the landlord, or further assign the lease to another entity reasonably acceptable to the landlord who agrees to assume the tenant's obligations under the lease.
Furthermore, upon such assignment, the assignee has no further liability under the lease, and the landlord will enter into a replacement Conditional Assignment of Lease Agreement with the new tenant. This arrangement ensures that Floyds 99 has the ability to transfer the lease to another franchisee or entity, providing flexibility in managing the franchise network and maintaining control over the location of its shops.