Who is the 'Franchisee' referring to in the Floyds 99 General Release?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT K (TO DISCLOSURE DOCUMENT)
GENERAL RELEASE
THIS GENERAL RELEASE ("Release") is made effective as of the day of, 20 by ("Franchisee") in favor of FLOYD'S 99 FRANCHISING, LLC, a Colorado limited liability company ("Franchisor") (collectively referred to as "Parties"). The Parties have entered into that certain Franchise Agreement dated ("Franchise Agreement") which governs the development and operation of a FLOYD'S 99 Barbershop ("FLOYD'S 99 Shop" or "Barbershop") (to the extent not otherwise defined herein, all initial-capitalized references shall have the same meaning as set forth in the Franchise Agreement). The Franchisee desires to transfer the Franchise Agreement, the ownership of the Franchisee, or the FLOYD'S 99 Shops or some or all of the assets of the Barbershop.
OR
The Franchisee desires to enter into a successor to the Franchise Agreement.
The Franchisor desires to consent to the Franchisee's request subject to the Franchisee's compliance with the terms and conditions set forth in the Franchise Agreement including, without limitation, the execution and delivery by the Franchisee to the Franchisor of this Release.
NOW, THEREFORE, in consideration of the foregoing, the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties hereby agree as follows:
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the "Franchisee" in the General Release refers to the party who is entering into a franchise agreement with Floyd's 99 Franchising, LLC. This is clarified within Exhibit K, which outlines the General Release agreement. The General Release is made effective as of a specific date by the "Franchisee" in favor of Floyd's 99 Franchising, LLC, indicating that the franchisee is the one granting the release.
The document specifies that the parties, the Franchisee and Floyd's 99 Franchising, LLC, have entered into a Franchise Agreement that governs the development and operation of a Floyd's 99 Barbershop. The General Release is relevant when the Franchisee desires to transfer the Franchise Agreement, the ownership of the Franchisee, the Floyd's 99 Shops, or some or all of the assets of the Barbershop. It also applies when the Franchisee wants to enter into a successor agreement to the Franchise Agreement.
Floyd's 99 Franchising, LLC requires the General Release to protect its interests when a franchisee seeks to transfer their franchise or enter into a successor agreement. By signing the release, the franchisee agrees to certain terms and conditions, providing the franchisor with legal protection and ensuring compliance with the Franchise Agreement. This requirement is a condition for the franchisor's consent to the franchisee's request to transfer the franchise or enter into a successor agreement.