Can a Floyds 99 franchise be transferred to an entity that operates a Competitive Business?

According to the 2025 Floyds 99 Franchise Disclosure Document, a franchise cannot be transferred to an entity that operates a Competitive Business. Specifically, one of the conditions that must be met for a transfer to be approved is that "Neither the proposed transferee nor any of its direct or indirect owners or affiliates operates, has an ownership interest in or performs services for a Competitive Business".

This restriction is typical in franchising to protect the brand and prevent conflicts of interest. Floyds 99 wants to ensure that a new owner is fully committed to the success of the franchise and not diverting resources or knowledge to a competing business. This requirement helps maintain the integrity of the Floyds 99 system and prevents potential misuse of confidential information or operational practices.

For a prospective franchisee, this means that if they plan to sell their Floyds 99 franchise in the future, the potential buyer cannot be involved in a competing business. This could limit the pool of potential buyers and might affect the sale price or terms. It is important to consider this restriction when evaluating the long-term investment potential of a Floyds 99 franchise.