What is the Floyds 99 franchisee required to enter into regarding the lease?

According to the 2025 Floyds 99 Franchise Disclosure Document, a franchisee is required to enter into the Franchisor's standard Conditional Assignment of Lease. This assignment serves as security for the franchisee's performance of their obligations under both the franchise agreement and the lease itself. Additionally, the franchisee must obtain the landlord's consent to the terms outlined in Floyds 99's standard Lease Addendum, incorporate the franchisor's required terms into the lease, or secure the landlord's consent to the terms of Floyds 99's standard lease form, depending on the specific situation.

Floyds 99 requires franchisees to obtain prior written approval from them before executing any lease or lease amendments for the franchised location. The lease for the Floyds 99 location must include specific provisions detailed in the Operations Manual. These provisions may include an initial or renewal term of at least 10 years with specified rent, the landlord's consent to the franchisee's use of Floyds 99's marks and signage, and the franchisor's right to enter the premises for modifications to protect the marks and licensed methods.

Furthermore, the lease should allow Floyds 99 to assume the lease and assign or sublet the premises to another franchisee without the landlord's consent if the franchisee defaults or the agreement terminates. The landlord must also provide Floyds 99 with written notice of any defaults by the franchisee and the right to cure those defaults. Acceptable restrictive use clauses must also be included in the lease. Floyds 99 reserves the right to require franchisees to use their standard lease form instead of adding provisions to the landlord's form.

It is important to note that Floyds 99's approval of a lease does not constitute a recommendation, endorsement, or guarantee of the location's suitability or profitability. The franchisee is responsible for ensuring the location and lease terms are acceptable and should not rely solely on Floyds 99's review. The franchisee must sign a lease within 270 days of the franchise agreement date and provide a copy to Floyds 99 within 15 days of execution.