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

According to the 2025 Floyds 99 Franchise Disclosure Document, an unauthorized transfer of the franchise can lead to termination of the franchise agreement. Specifically, if a franchisee sells, transfers, or assigns the franchise, an interest in the franchise, the franchise agreement itself, the Floyds 99 shop, or a substantial portion of the shop's assets without complying with the requirements outlined in Article 18 of the agreement, it is considered an unauthorized transfer.

Article 18 likely details the specific procedures and conditions that a franchisee must follow when seeking to transfer ownership or control of the franchise. These conditions typically involve obtaining the franchisor's approval, which may include a review of the proposed transferee's qualifications, financial stability, and business experience. Floyds 99 also likely has a right of first refusal, allowing them to purchase the franchise on the same terms as a third-party offer.

Failure to adhere to these transfer requirements can have significant consequences, including the termination of the franchise agreement. This highlights the importance of franchisees understanding and complying with all transfer provisions to avoid jeopardizing their investment and business operations. Prospective franchisees should carefully review Article 18 and seek legal counsel to ensure they fully understand their obligations regarding franchise transfers.