What is the Floyds 99 franchisee acknowledging when the Franchisor approves a lease or purchase agreement?

According to the 2025 Floyds 99 Franchise Disclosure Document, a 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 of the location's suitability or profitability. This also applies to the lease, any lease amendments, or the purchase agreement itself. Essentially, Floyds 99's approval is not a promise that the location will be successful.

This means the franchisee is responsible for taking all necessary steps to determine if the location, lease, and purchase agreement are acceptable to them. Floyds 99 emphasizes that franchisees should not rely on the franchisor's review and approval for any purpose, as the review and approval are solely for the franchisor's benefit. This is a common practice in franchising, where the franchisee bears the ultimate responsibility for their business's success.

In practical terms, a prospective Floyds 99 franchisee should conduct thorough due diligence on the location, including market research, demographic studies, and financial projections, before signing a lease or purchase agreement. They should also seek independent legal and financial advice to ensure they fully understand the terms of the lease or purchase agreement and the potential risks and rewards of the location. While Floyds 99 must approve the location, that approval doesn't shift the burden of ensuring the site is viable from the franchisee to the franchisor.