Can Floyds 99 delegate its obligations under the agreement to third parties?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 18.6 is deleted and the following is inserted in its place:
This Agreement is fully assignable by the Franchisor and shall inure to the benefit of any assignee or other legal successor in interest, and the Franchisor shall in such event be fully released from the same, provided no assignment shall be made except to an assignee who, in the Franchisor's good faith judgment, is willing and able to assume the Franchisor's obligations under this Agreement.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the standard agreement allows Floyds 99 to assign the agreement to a third party. However, this ability to assign the agreement is modified by a rider for franchisees in New York.
Specifically, the New York rider states that Floyds 99 can assign the Franchise Agreement. However, Floyds 99 can only make this assignment to an entity that, in Floyds 99's good faith judgment, is willing and able to assume Floyds 99's obligations under the agreement.
Furthermore, upon such an assignment, Floyds 99 is released from its obligations under the franchise agreement. This means that a New York Floyds 99 franchisee could have their agreement transferred to a new franchisor, who would then be responsible for upholding the terms of the agreement, while Floyds 99 would no longer be involved.