Is a Floyds 99 franchisee considered an agent, employee, or partner of the franchisor?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
21. BUSINESS RELATIONSHIP
- 21.1 Independent Businesspersons.
The parties acknowledge that each of them is an independent businessperson, that their only relationship is by virtue of this Agreement and that no fiduciary relationship is created hereunder.
Neither party is liable or responsible for the other's debts or obligations, nor shall either party be obligated for any damages to any person or property directly or indirectly arising out of the operation of the other party's business authorized by or conducted pursuant to this Agreement.
Neither the Franchisor nor the Franchisee will hold themselves out to be the agent, employer or partner of the other and neither the Franchisor nor the Franchisee has the authority to bind or incur liability on behalf of the other.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchisee is considered an independent businessperson and not an agent, employee, or partner of the franchisor. The agreement explicitly states that the relationship between the parties is solely based on the franchise agreement and does not create any fiduciary relationship. This means that Floyds 99 franchisees operate their businesses independently and are responsible for their own debts, obligations, and liabilities.
Floyds 99 is not liable or responsible for the franchisee's debts or obligations, and vice versa. Neither party can act on behalf of the other or incur liabilities for the other's business operations. This reinforces the independent nature of the franchise relationship. The franchisee is responsible for managing their Floyds 99 shop, including hiring and training employees, and ensuring compliance with all applicable laws and regulations.
This independent business relationship is a common structure in franchising. It allows franchisees to operate their own businesses while benefiting from the established brand, systems, and support of the franchisor. However, it also means that franchisees bear the risks and rewards of their business and are responsible for their own success. Prospective Floyds 99 franchisees should carefully consider the implications of this independent business relationship and ensure they are prepared to manage their business effectively.