What documents related to the lease does Floyds 99 require the franchisee to obtain from the landlord?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
e, in the Franchisor's sole discretion. The lease shall be conditionally assigned to the Franchisor as security for the Franchisee's timely performance of all obligations under this Agreement and the lease. The Franchisee shall enter into Franchisor's standard Conditional Assignment of Lease. In addition, the Franchisee shall obtain the landlord's consent to the terms of the Franchisor's standard form of Lease Addendum or incorporate the Franchisor's required terms into the lease or obtain the landlord's consent to the terms of the Franchisor's standard form of lease, whichever is applicable. The Franchisee acknowledges that the Franchisor's approval of a lease or purchase agreement for the Franchised Location does not constitute a recommendation, endorsement or guarantee by the Franchisor of the suitability or profitability of the location, the lease, lease amendments or purchase agreement. The Franchisee should take all steps necessary to ascertain whether the location, lease, lease amendments or purchase agreement is acceptable to the Franchisee. The Franchisor's review and approval of the lease or purchase agreement shall be for the Franchisor's benefit only and the Franchisee should not rely on such review and approval for any purpose whatsoever. The Franchisee shall sign a lease for the Franchised Location within two hundred seventy (270) days after the date of this Agreement and shall deliver a copy of the signed lease, including all lease amendments, to the Franchisor within 15 days of its execution.
- 5.3 Construction, Conversion and Design. The Franchisee acknowledges that the improvements, layout, fixtures, design, decoration and color scheme of FLOYD'S 99 Shops are an integral part of the Franchisor's proprietary Licensed Methods and accordingly, the Franchisee shall construct, convert, improve, design and decorate the Franchised Location in accordance with the Franchisor's plans and specifications and with the assistance of contractors, architects and suppliers designated by or otherwise approved by the Franchisor. The Franchisor reserves the right to specify a minimum number of barber chairs at a Franchised Location, among other things. Before construction, remodeling or decorating begins, the Franchisee shall submit an "as-built" survey to the Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, a franchisee must obtain several documents related to the lease from the landlord. Specifically, the franchisee must secure the landlord's consent to the terms outlined in Floyds 99's standard Lease Addendum. Alternatively, the franchisee can incorporate Floyds 99's required terms directly into the lease agreement or obtain the landlord's consent to Floyds 99's standard form of lease.
Floyds 99 also requires that the lease for the franchised location includes specific provisions detailed in the Operations Manual. These provisions include an initial term (or initial and renewal terms with specified rent) of at least 10 years, the landlord's consent to the franchisee's use of Floyds 99's trademarks and required signage, and granting Floyds 99 the right to enter the premises for modifications to protect its marks and licensed methods. The lease should also allow Floyds 99 to assume the lease and assign or sublet the premises to another franchisee without further landlord consent under certain conditions, such as franchisee default or termination of the agreement. Additionally, the landlord must provide written notice of any franchisee defaults and allow Floyds 99 the right to cure those defaults, and the lease must contain restrictive use clauses acceptable to Floyds 99.
Furthermore, Floyds 99 may require the franchisee to use Floyds 99's standard lease form instead of adding the required provisions to the landlord's form, at Floyds 99's discretion. The franchisee is also required to enter into Floyds 99's standard Conditional Assignment of Lease, and the lease will be conditionally assigned to Floyds 99 as security for the franchisee's performance of obligations under the franchise agreement and the lease. The franchisee must also deliver a copy of the signed lease, including all amendments, to Floyds 99 within 15 days of its execution.