Does a Floyds 99 franchisee receive additional consideration for assigning proprietary rights to the franchisor?

According to the 2025 Floyds 99 Franchise Disclosure Document, when the franchise agreement expires or terminates, the franchisee must transfer any rights they possess in a trade name or Internet domain name utilizing the words "FLOYD'S 99" or any other mark owned by Floyds 99 to the franchisor. The FDD does not specify that the franchisee will receive additional consideration for this assignment. This is a fairly standard clause in franchise agreements, as it protects the brand's trademarks and online presence.

This requirement ensures that upon the end of the franchise relationship, the franchisee cannot continue to operate a similar business using the Floyds 99 name or confusingly similar branding. It allows Floyds 99 to maintain control over its brand identity and prevent potential customer confusion.

Prospective franchisees should be aware that any domain names or trade names they register containing "FLOYD'S 99" become the property of the franchisor upon termination or expiration of the agreement. It is important to clarify with Floyds 99 what, if any, compensation or consideration is provided for the transfer of these rights, particularly if the franchisee has invested time and resources in developing the domain name or trade name.