Must a Floyds 99 franchisee pay all outstanding amounts to the Franchisor before a transfer can occur?

According to Floyds 99's 2025 Franchise Disclosure Document, a franchisee is obligated to pay all outstanding amounts to the franchisor upon termination or expiration of the franchise agreement. Specifically, this includes all royalties, national marketing contributions, other fees, and any other amounts owed to Floyds 99 or its affiliates. These amounts can arise from the franchise agreement itself or any other agreement, whether written or oral, including subleases and lease assignments between the parties. This obligation is triggered immediately upon termination or expiration of the agreement.

This requirement ensures that Floyds 99 receives all payments due before the franchisee exits the system. It covers a broad range of potential debts, reflecting the various financial interactions between a franchisee and the franchisor. The inclusion of amounts due under any agreement, even those not explicitly part of the franchise agreement, highlights the importance of maintaining good financial standing with Floyds 99 throughout the franchise term.

For a prospective Floyds 99 franchisee, this means that before considering a transfer or at the end of the franchise term, it is crucial to ensure all financial obligations to Floyds 99 are met. Failure to do so could prevent the transfer from occurring or lead to legal action to recover the outstanding amounts. Franchisees should maintain meticulous records of all payments and agreements to avoid disputes during the transfer or termination process. This also underscores the importance of understanding all agreements with Floyds 99 and its affiliates, not just the franchise agreement itself, to fully grasp the scope of potential financial obligations.