Must the Floyds 99 developer and their transferring owners sign an agreement?

According to the 2025 Floyds 99 Franchise Disclosure Document, if the developer is an entity, all of the owners of the developer must sign the Guaranty and Assumption of Developer's Obligations, which is attached as Exhibit II. This means that if the Floyds 99 developer is a corporation, LLC, or partnership, each individual who owns a stake in that entity is required to sign a guarantee, ensuring they are personally liable for the developer's obligations under the Development Agreement. This is a common practice in franchising to ensure that there is recourse beyond just the business entity itself.

Furthermore, the FDD outlines specific transfer scenarios that require adherence to approval processes. If a developer wishes to transfer their rights, interests, or assets related to a Floyds 99 Shop, they must grant Floyds 99 a 90-day right of first refusal. If the developer is a partnership or business association, the addition or deletion of a partner or member, or the transfer of partnership or membership among existing partners or members, is subject to approval. Similarly, if the developer is a corporation or LLC, any transfer of 25% or more of the ownership interests requires franchisor approval, whether it occurs in a single transaction or multiple transactions.

If the developer is an individual transferring to a corporation or LLC they control, Floyds 99's approval is conditional. The individual must provide a continuing personal guarantee, and any subsequent transfer affecting 25% or more of the company's ownership requires prior written approval from Floyds 99. The company's business activity must also be limited to operating as a developer and operator of Floyds 99 Shops. In the case of transfers from an individual to a controlled entity, Floyds 99 waives the transfer fee and right of first refusal. These stipulations ensure that Floyds 99 maintains control over who is developing and operating their franchises and that the financial obligations are secured.