What documents must be executed by each owner of the Floyds 99 Franchisee not otherwise signing the Guaranty and Assumption of Franchisee's Obligations, and their respective spouses?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned owners (who are not otherwise identified as owners in the Franchise Agreement) and their respective spouses, and the undersigned spouses of those owners identified in the Franchise Agreement, hereby consent to the provisions of Sections 18.4 and 20.3 of the Franchise Agreement and agree that any interest which he or she owns in the Franchise Agreement, in the business operated thereunder, or in Franchisee (whether a separate property interest, community property interest, joint ownership interest, or otherwise) will be subject to Franchisor's option to purchase or right of first refusal, as applicable, described in said Sections.
Name of Owner Name of Owner Signature of Owner (if applicable) Signature of Owner (if applicable) Name of Owner's Spouse Name of Owner's Spouse Signature of Owner's Spouse Signature of Owner's Spouse Name of Owner Name of Owner Signature of Owner (if applicable) Signature of Owner (if applicable) Name of Owner's Spouse Name of Owner's Spouse Signature of Owner's Spouse Signature of Owner's Spouse
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, owners of the Franchisee who do not sign the Guaranty and Assumption of Franchisee's Obligations, along with their spouses, must sign the Consent to Option. This document is detailed in Exhibit VI to the Franchise Agreement.
The Consent to Option pertains to Sections 18.4 and 20.3 of the Franchise Agreement, ensuring that any interest the owner or their spouse has in the Franchise Agreement, the business, or the Franchisee itself is subject to Floyds 99's option to purchase or right of first refusal. This includes any type of ownership interest, be it separate, community property, or joint ownership.
This requirement ensures Floyds 99 maintains control over the franchise and its ownership, even in situations where an owner is not directly involved in the daily operations or financial guarantees. It is a standard practice in franchising to protect the brand and ensure consistent management and operational standards. Prospective franchisees should carefully review these sections of the Franchise Agreement to fully understand the implications of the Consent to Option.