Does the Floyds 99 Franchise Agreement require the proposed transferee to meet certain aptitude qualifications?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
18.3 Franchisor's Approval of Transfer. The Franchisor has 90 days from the date of the written notice of the proposed transfer to approve or disapprove in writing, of the Franchisee's proposed transfer. The Franchisee acknowledges that the proposed transferee shall be evaluated for approval by the Franchisor based on the same criteria as is currently being used to assess new franchisees of the Franchisor and that such proposed transferee shall be provided, if appropriate, with such disclosures as may be required by state or federal law. If the Franchisee and the proposed transferee comply with all conditions for assignment set forth herein and the Franchisor has not given the Franchisee notice of its approval or disapproval within the
90-day period, approval is deemed granted. The Franchisor's approval of any transfer shall not constitute approval for any subsequent transfer or a waiver of any of the Franchisor's rights under this Article 18.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, if a franchisee wishes to transfer their rights, the proposed transferee will be evaluated based on the same criteria used to assess new franchisees. Floyds 99 has 90 days from the date of written notice of the proposed transfer to approve or disapprove of the transfer. If the franchisee and the proposed transferee comply with all conditions for assignment and Floyds 99 has not given notice of its approval or disapproval within the 90-day period, approval is deemed granted.
This means that anyone seeking to take over a Floyds 99 franchise must undergo a similar evaluation process as a new franchisee. This process likely includes assessments of financial capacity, business experience, and other relevant qualifications. The transferee may also be required to complete the then-current disclosure documents required by state or federal law.
It is important for a prospective franchisee to understand the criteria Floyds 99 uses to evaluate new franchisees, as this will be the same standard applied to any potential transferee. A franchisee looking to sell their franchise should ensure that any potential buyer is aware of these requirements to avoid delays or disapproval of the transfer. This also protects the Floyds 99 brand by ensuring that all franchisees meet a minimum standard of competence and suitability.