Is the Floyds 99 Developer required to provide proof of ownership and control to the Franchisor?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Ownership of Business. Developer shall at all times during the term of this Agreement own and control the FLOYD'S 99 developer business authorized hereunder. Upon request of Franchisor, Developer shall promptly provide satisfactory proof of such ownership and control to Franchisor. Developer represents that the Statement of Ownership, attached hereto as Exhibit III and by this reference
incorporated herein, is true, complete, accurate and not misleading, and, in accordance with the information contained in the Statement of Ownership, the controlling ownership of the FLOYD'S 99 developer business is held by Developer. Developer shall promptly provide Franchisor with a written notification if the information contained in the Statement of Ownership changes at any time during the term of this Agreement and shall comply with the applicable transfer provisions contained in Article 8 herein and in the Franchise Agreement. In addition, if Developer is an entity, all of the owners of Developer shall sign the Guaranty and Assumption of Developer's Obligations attached hereto as Exhibit II.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Developer is required to demonstrate ownership and control of their Floyds 99 developer business to the Franchisor. Upon the Franchisor's request, the Developer must promptly provide satisfactory proof of such ownership and control. This ensures that the Developer is actively managing and responsible for the Floyds 99 developer business.
The Developer initially represents their ownership through a Statement of Ownership, attached as Exhibit III to the agreement. This statement must be true, complete, accurate, and not misleading. The controlling ownership of the Floyds 99 developer business, according to this statement, must be held by the Developer. Any changes to the information in this statement during the term of the agreement must be promptly communicated to the Franchisor in writing. The Developer must also comply with the transfer provisions outlined in Article 8 of the agreement and the Franchise Agreement.
If the Developer is a business entity, all owners of the entity are required to sign a Guaranty and Assumption of Developer's Obligations, which is attached as Exhibit II. This further reinforces the accountability and commitment of the ownership to the Floyds 99 developer business. These measures ensure that Floyds 99 maintains a clear understanding of who controls and owns each developer business, allowing them to enforce the terms of the agreement and protect the brand's interests.