What is the dependency between the Developer's obligations under the Development Agreement and the Franchise Agreement for the first Floyds 99 barbershop?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3 Franchise Agreement First Barbershop Developed. The parties acknowledge that the Franchise Agreement, attached hereto as Exhibit IV and by this reference incorporated herein, governing the operation of Developer's first Barbershop to be opened hereunder, is being executed concurrently with this Agreement. Developer agrees to comply with the terms and conditions of the Franchise Agreement as a part of its obligations hereunder and acknowledges that failure to execute and comply with such Franchise Agreement is a breach of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the Franchise Agreement governing the operation of the Developer's first barbershop is executed concurrently with the Development Agreement. As part of the obligations under the Development Agreement, the Developer must comply with the terms and conditions of this initial Franchise Agreement. Failure to execute and comply with the initial Franchise Agreement constitutes a breach of the Development Agreement.
This means that the Developer's rights and responsibilities under the Development Agreement are directly linked to their adherence to the Franchise Agreement for the first Floyds 99 location. If the Developer fails to meet the obligations outlined in the Franchise Agreement, Floyds 99 has the right to consider it a breach of the Development Agreement as well.
This interdependency underscores the importance of understanding and fulfilling all requirements of both agreements from the outset. A prospective Floyds 99 developer should carefully review both the Development Agreement and the initial Franchise Agreement to ensure they can meet all obligations. Any shortcomings in adhering to the Franchise Agreement for the first location can have significant repercussions on the entire development schedule and rights.