Is a Floyds 99 developer prohibited from assisting the transferee during the transfer process?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
8.3 Franchisor's Approval of Transfer. Franchisor has 90 days from the date of the written notice of the proposed transfer to approve or disapprove in writing, of Developer's proposed transfer.
Developer acknowledges that the proposed transferee shall be evaluated for approval by Franchisor based on the same criteria as is currently being used to assess new Developers of Franchisor and that such proposed transferee shall be provided, if appropriate, with such disclosures as may be required by state or federal law. If Developer and the proposed transferee comply with all conditions for assignment set forth herein and Franchisor has not given Developer notice of its approval or disapproval within the 90-day period, approval is deemed granted. Franchisor's approval of any transfer shall not constitute approval for any subsequent transfer or a waiver of any of Franchisor's rights under this Article 8.
- 8.4 Right of First Refusal.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
The 2025 Floyds 99 Franchise Disclosure Document does not explicitly prohibit a developer from assisting the transferee during the transfer process. However, the FDD outlines several conditions and requirements that the developer and the proposed transferee must meet for the transfer to be approved by Floyds 99.
Specifically, the proposed transferee must be evaluated based on the same criteria used to assess new developers. The transferee may also be required to receive disclosures as mandated by state or federal law. The developer must also execute a general release of claims against Floyds 99. Additionally, the developer and their immediate family members may need to sign a non-competition covenant.
While the FDD does not forbid assistance, it emphasizes Floyds 99's right to approve or disapprove the transfer based on whether the conditions are met. It also states that Floyds 99 has 90 days to make a decision regarding the transfer. A prospective franchisee should clarify with Floyds 99 what specific types of assistance are permissible and what might be considered an attempt to circumvent the approval process.