What constitutes an 'unauthorized transfer' of a Floyds 99 franchise that could lead to termination?

According to Floyds 99's 2025 Franchise Disclosure Document, an 'unauthorized transfer' that could lead to the termination of the franchise agreement occurs if a franchisee sells, transfers, or assigns the franchise without complying with the provisions outlined in Article 18 of the agreement. This includes transferring an interest in the franchise, the agreement itself, the Floyds 99 shop, or a substantial portion of the shop's assets.

Article 18 likely contains specific procedures and conditions that a franchisee must follow when seeking to transfer ownership or control of the franchise. These provisions are designed to ensure that any new owner meets Floyds 99's standards and is capable of maintaining the brand's reputation and operational consistency. Failure to adhere to these procedures would constitute an unauthorized transfer and could result in the termination of the franchise agreement.

It is important for prospective Floyds 99 franchisees to carefully review Article 18 of the franchise agreement to fully understand the requirements for transferring ownership. This includes understanding any required approvals from Floyds 99, the criteria used to evaluate potential transferees, and any fees or costs associated with the transfer process. Compliance with these provisions is crucial to avoid potential termination of the franchise agreement and any associated financial losses.