Does the Floyds 99 Franchise Agreement require the proposed transferee to meet certain business experience qualifications?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
nsferee nor any of its direct or indirect owners or affiliates operates, has an ownership interest in or performs services for a Competitive Business; and
- i. Agreement by the Franchisee to abide by the post-termination covenant not to compete set forth in Section 22.2 below.
The Franchisor will not unreasonably withhold, delay or condition its consent to any proposed transfer by the Franchisee which requires the Franchisor's consent under this Section 18.2.
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.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the proposed transferee will be evaluated based on the same criteria as new franchisees. Floyds 99 has 90 days from the date of written notice of the proposed transfer to approve or disapprove the transfer. If the franchisee and the proposed transferee comply with all assignment conditions and Floyds 99 does not provide notice of approval or disapproval within the 90-day period, approval is considered granted.
While the FDD states that the proposed transferee will be evaluated using the same criteria as new franchisees, it does not specify what those criteria are. The FDD mentions that the franchisee is responsible for hiring fully licensed barbers and cosmetologists who meet Floyds 99's guidelines related to experience. This suggests that experience is a factor considered for employees, but it's unclear if this directly translates to the transferee's qualifications.
To fully understand the business experience qualifications required for a proposed transferee, a prospective franchisee should ask Floyds 99 for a detailed list of the criteria used to evaluate new franchisees. This will help determine if the proposed transferee meets the necessary qualifications for approval.