What is the definition of 'Franchised Location' in the context of the Floyds 99 Franchise Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
any services or products not previously approved by the Franchisor in writing and shall further be restricted from offering the authorized services or distributing the authorized products for nonretail or off-site sale except as permitted by the Franchisor in writing.
3. FRANCHISED LOCATION AND TERRITORIAL RIGHTS
3.1 Franchised Location. The Franchisee is granted the right and franchise to own and operate a FLOYD'S 99 Shop at the address and location which shall be set forth in Exhibit I, attached hereto ("Franchised Location"). If, at the time the parties execute this Agreement, the Franchised Location cannot be designated as a specific address because a location has not been selected and approved, then the Franchisee shall promptly take steps to choose and acquire a location for its FLOYD'S 99 Shop within the
- "Designated Area," set forth in Exhibit I. In such circumstances, the Franchisee shall select and propose to the Franchisor for the Franchisor's prior approval a specific location for the Franchised Location which, once approved by the Franchisor, shall then be described in the rider to Exhibit I.
- 3.2 Protected Territory. Subject to the Franchisor's reservation of rights described in Section 3.4 below, the Franchisor shall not establish and operate, or franchise another person or entity to establish and operate, a FLOYD'S 99 Shop within the geographic area described in Exhibit I, attached hereto (the "Protected Territory"). Once Franchisor has defined the Protected Territory, Franchisee will have no further territorial or other rights in those portions of the Designated Area that are located outside of the Protected Territory.
- 3.3 Limitation on Franchise Rights; Relocation. The rights that are granted to the Franchisee are for the specific Franchised Location and cannot be transferred to an alternative Franchised Location, or any other location, without the prior written approval of the Franchisor, which approval shall not be unreasonably withheld. The Franchisee shall not operate another business, offer services or products which are part of the Licensed Methods at any site other than the Franchised Location (except for other Franchised Locations covered by other Franchise Agreements with the Franchisee), fill wholesale orders, sell products or services by mail order or through catalogs or the Internet, transship or reship products, or offer any other type of off-site service or sale of products. If Franchisee desires to relocate the FLOYD'S 99 Shop or is unable to continue the operation of the FLOYD'S 99 Shop at the Franchised Location because of damage to or destruction of the FLOYD'S 99 Shop, then Franchisee may request Franchisor's approval to relocate the FLOYD'S 99 Shop to another location in the Protected Territory, which approval shall not be unreasonably withheld. If Franchisor grants Franchisee the right to relocate the FLOYD'S 99 Shop, then Franchisee shall comply with the site selection and construction procedures set forth in Article 5 and pay Franchisor the then-current relocation fee.
- 3.4 Franchisor's Reservation of Rights.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the 'Franchised Location' refers to the specific address and location where a franchisee is authorized to operate a Floyds 99 shop. This location is documented in Exhibit I of the Franchise Agreement.
If the exact location isn't determined when the agreement is signed, the franchisee is expected to promptly find and secure an approved site within a defined 'Designated Area,' also outlined in Exhibit I. The franchisee has 270 days from the agreement date to find a suitable location, get it approved by Floyds 99, and sign the lease. Extensions may be granted if site availability issues arise despite the franchisee's reasonable efforts.
The franchisee must follow Floyds 99's site selection procedures, potentially including using their designated site selection service. Floyds 99 retains the right to approve the proposed location, ensuring it meets their criteria. However, Floyds 99's approval doesn't guarantee the site's suitability for the shop. The franchisee also needs written approval from Floyds 99 before signing any lease or amendments for the Franchised Location.
The rights granted to the franchisee are specific to the approved Franchised Location and cannot be transferred without Floyds 99's written consent. The franchisee is restricted from operating another business or offering services related to Floyds 99 at any other location, except for other franchised locations under separate agreements. Relocation is possible with Floyds 99's approval, subject to compliance with site selection procedures and payment of a relocation fee.