Can a Floyds 99 franchisee transfer their rights to an alternative location without approval?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
described in Exhibit I, attached hereto (the "Protected Territory"). Once Franchisor has defined the Protected Territory, Franchisee will have no further territorial or other rights in those portions of the Designated Area that are located outside of the Protected Territory.
- 3.3 Limitation on Franchise Rights; Relocation. The rights that are granted to the Franchisee are for the specific Franchised Location and cannot be transferred to an alternative Franchised Location, or any other location, without the prior written approval of the Franchisor, which approval shall not be unreasonably withheld. The Franchisee shall not operate another business, offer services or products which are part of the Licensed Methods at any site other than the Franchised Location (except for other Franchised Locations covered by other Franchise Agreements with the Franchisee), fill wholesale orders, sell products or services by mail order or through catalogs or the Internet, transship or reship products, or offer any other type of off-site ser
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a franchisee cannot transfer their rights to an alternative location without prior written approval from Floyds 99. The rights granted to the franchisee are specific to the initially approved location.
If a Floyds 99 franchisee wishes to relocate their shop, they must request approval from Floyds 99, which approval will not be unreasonably withheld. This is particularly relevant if the current location is damaged or destroyed. If relocation is approved, the franchisee must adhere to the site selection and construction procedures outlined in Article 5 and pay the then-current relocation fee.
This requirement ensures that Floyds 99 maintains control over its brand and site selection, even if a franchisee wants to move to a different location. It is a fairly standard practice in franchising to protect brand consistency and ensure that new locations meet the franchisor's standards. The franchisee should be aware of these procedures and potential costs if relocation becomes necessary.