Does the definition of 'transfer' for a Floyds 99 franchise include transfers resulting from the death of the franchisee?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.7 Franchisee's Death or Disability. Upon the death or permanent disability of the Franchisee (or the individual controlling the Franchisee entity), the executor, administrator, conservator, guardian or other personal representative of such person shall transfer the Franchisee's interest in this Agreement or such interest in the Franchisee entity to an approved third party. Such disposition of this Agreement or such interest (including, without limitation, transfer by bequest or inheritance) shall be completed within a reasonable time, not to exceed 180 days from the date of death or permanent disability, and shall be subject to all terms and conditions applicable to transfers contained in this Article 18. Failure to transfer the interest in this Agreement or such interest in the Franchisee entity within said period of time shall constitute a breach of this Agreement. For the purposes hereof, the term "permanent disability" shall mean a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent the Franchisee or the owner of a controlling interest in the Franchisee entity from supervising the management and operation of the FLOYD'S 99 Shop for a period of 120 days from the onset of such disability, impairment or condition.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the definition of 'transfer' does include transfers resulting from the death of the franchisee. Specifically, upon the death of the franchisee, their personal representative is required to transfer the franchisee's interest in the Franchise Agreement to an approved third party. This transfer can occur through bequest or inheritance.
The transfer must be completed within a reasonable timeframe, not exceeding 180 days from the date of death. This requirement is subject to all the standard terms and conditions applicable to transfers as outlined in the franchise agreement. Failure to complete the transfer within this 180-day period constitutes a breach of the agreement.
This clause ensures that in the event of the franchisee's death, the Floyds 99 franchise continues to operate under an approved owner, maintaining the brand's standards and reputation. The 180-day window provides the deceased franchisee's estate with a defined period to find a qualified buyer and complete the transfer process, while also protecting Floyds 99's interests by preventing prolonged uncertainty or mismanagement of the franchise.