What is the consequence if a Floyds 99 developer surrenders or transfers control of the agreement without the franchisor's prior written consent?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
9.1 Termination by Franchisor Effective Upon Notice. Franchisor shall have the right, at its option, to terminate this Agreement and all rights granted Developer hereunder, without affording Developer any opportunity to cure any default (subject to any state laws to the contrary, where state law shall prevail), effective upon written notice to Developer, addressed as provided in Section 13.11, upon the occurrence of any of the following events:
(f) Developer surrenders or transfers control of this Agreement or the business without Franchisor's prior written consent;
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, if a developer surrenders or transfers control of the agreement or the business without obtaining prior written consent from Floyds 99, the franchisor has the right to terminate the agreement. This termination is effective immediately upon written notice to the developer. Importantly, Floyds 99 does not need to provide an opportunity for the developer to correct this failure, although state laws to the contrary will prevail where applicable.
This provision underscores the importance Floyds 99 places on maintaining control over its franchise system and ensuring that developers meet the franchisor's standards. The requirement for prior written consent allows Floyds 99 to carefully vet potential new controlling parties and ensure they are suitable to uphold the brand's reputation and operational standards.
For a prospective Floyds 99 developer, this means that any transfer of control, whether through a sale, merger, or other means, must be carefully planned and executed with the franchisor's full knowledge and approval. Failure to do so can result in the immediate loss of development rights, which could have significant financial and operational consequences for the developer.