Does the Floyds 99 development agreement specify if the transfer fee can be financed?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.4 Right of First Refusal.
If Developer wishes to transfer its rights under this Agreement or any interest in it, or any part or portion of any business entity that owns it, or all or a substantial portion of the assets of any FLOYD'S 99 Shop developed pursuant to this Agreement, Developer agrees to grant to Franchisor a 90-day right of first refusal to purchase such rights, interest or assets on the same terms and conditions as are contained in the written offer to purchase submitted to Developer by the proposed purchaser; provided, however, the following additional terms and conditions shall apply:
(a) Developer shall notify Franchisor of such offer by sending a written notice to Franchisor (which notice may be the same notice as required by Section 8.2.d. above), enclosing a copy of the written offer from the proposed purchaser;
(b) The 90-day right of first refusal period will run concurrently with the period in which Franchisor has to approve or disapprove the proposed transferee;
(c) Such right of first refusal is effective for each proposed transfer and any material change in the terms or conditions of the proposed transfer shall be deemed a separate offer on which a new 90-day right of first refusal shall be given to Franchisor;
(d) If the consideration or manner of payment offered by a third party is such that Franchisor may not reasonably be required to furnish the same, then Franchisor may purchase the interest which is proposed to be sold for the reasonable cash equivalent.
If the parties cannot agree within a reasonable time on the cash consideration, an independent appraiser shall be designated by Franchisor, whose determination will be binding upon the parties.
All expenses of the appraiser shall be paid for equally between Franchisor and Developer; and
- (e) If Franchisor chooses not to exercise its right of first refusal, Developer shall be free to complete the sale, transfer or assignment, subject to compliance with Sections 8.2 and 8.3 above.
Absence of a reply to Developer's notice of a proposed sale within the 90-day period is deemed a waiver of such right of first refusal.
- 8.5 Specific Types of Transfers.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
Based on the 2025 Floyds 99 Franchise Disclosure Document excerpts provided, there is no information regarding the option to finance the transfer fee within the development agreement. The document details various aspects of transfers, including the franchisor's right of first refusal, conditions for approval, and specific types of transfers, but it does not mention whether the transfer fee can be financed.
Item 8.4 outlines Floyds 99's right of first refusal if a developer wishes to transfer their rights, interest, or assets. This section specifies the process for notifying the franchisor of an offer and the conditions under which the franchisor may purchase the interest. Item 8.5 discusses specific types of transfers, such as those involving partnerships, corporations, or individuals transferring to a controlled entity, and outlines conditions for franchisor approval in these scenarios. However, none of these sections address the possibility of financing the transfer fee.
A prospective Floyds 99 franchisee should directly ask the franchisor whether financing options are available for the transfer fee. This inquiry should clarify whether such an arrangement is possible and what terms and conditions would apply. Understanding this aspect is crucial for financial planning and ensuring a smooth transfer process.