Who are considered 'Franchisor Affiliates' in the Floyds 99 General Release?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT K (TO DISCLOSURE DOCUMENT)
GENERAL RELEASE
THIS GENERAL RELEASE ("Release") is made effective as of the day of, 20 by ("Franchisee") in favor of FLOYD'S 99 FRANCHISING, LLC, a Colorado limited liability company ("Franchisor") (collectively referred to as "Parties"). The Parties have entered into that certain Franchise Agreement dated ("Franchise Agreement") which governs the development and operation of a FLOYD'S 99 Barbershop ("FLOYD'S 99 Shop" or "Barbershop") (to the extent not otherwise defined herein, all initial-capitalized references shall have the same meaning as set forth in the Franchise Agreement). The Franchisee desires to transfer the Franchise Agreement, the ownership of the Franchisee, or the FLOYD'S 99 Shops or some or all of the assets of the Barbershop.
OR
The Franchisee desires to enter into a successor to the Franchise Agreement.
The Franchisor desires to consent to the Franchisee's request subject to the Franchisee's compliance with the terms and conditions set forth in the Franchise Agreement including, without limitation, the execution and delivery by the Franchisee to the Franchisor of this Release.
NOW, THEREFORE, in consideration of the foregoing, the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties hereby agree as follows:
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
Based on the 2025 Floyds 99 Franchise Disclosure Document, Exhibit K contains the General Release. However, the document excerpt does not specify who the 'Franchisor Affiliates' are within the context of the General Release. The General Release outlines an agreement between the franchisee and Floyd's 99 Franchising, LLC, where the franchisee may be releasing certain rights or claims in favor of Floyd's 99 Franchising, LLC.
Without a clear definition of 'Franchisor Affiliates' in the General Release, it is difficult to determine the full scope of the release and who it protects. This is a crucial point for prospective franchisees to understand, as the release could potentially extend to entities beyond just the franchisor itself.
Therefore, a prospective Floyds 99 franchisee should ask the franchisor for a precise definition of 'Franchisor Affiliates' and clarify the extent to which the General Release applies to these affiliates. Understanding this definition is essential for assessing the risks and implications of signing the General Release.