What is the Floyds 99 franchisee's obligation to follow the Franchisor's site selection procedures?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee shall follow the Franchisor's site selection procedures in locating a Franchised Location for the FLOYD'S 99 Shop, including using the Franchisor's designated site selection service provider to assist the Franchisee in finding a Franchised Location. The Franchisee shall seek the Franchisor's approval of any site proposed as a Franchised Location, by submitting a complete site submittal package, including demographics and other materials requested by the Franchisor, containing all information reasonably required by the Franchisor to assess a proposed Franchised Location. The Franchisor will not unreasonably withhold approval of a proposed site that meets all of the Franchisor's site selection criteria. The Franchisee acknowledges and agrees that the Franchisor's approval of a site and any information provided by the Franchisor regarding the site does not constitute a representation or warranty of any kind, express or implied, as to the suitability of the site for a FLOYD'S 99 Shop. If the Franchisor must disapprove of any site proposed by the Franchisee, the Franchisor will grant the Franchisee an additional, reasonable period of time to obtain approval of a Franchised Location, as may be determined in the Franchisor's reasonable business judgment.
- 5.2 Approval of Site Acquisition or Lease.
The Franchisee shall obtain the Franchisor's prior written approval before executing any lease, including all lease amendments, for the Franchised Location.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees are obligated to follow the franchisor's site selection procedures when locating a site for their Floyds 99 shop. This includes using Floyds 99's designated site selection service provider to assist in finding a location. The franchisee must seek the franchisor's approval of any proposed site by submitting a complete site submittal package with all required information for assessment. Floyds 99 will not unreasonably withhold approval of a site that meets all of their criteria.
The franchisee has 270 days from the agreement date to locate a suitable site, gain approval, and sign the lease. If the franchisee makes reasonable efforts but cannot find a site due to circumstances beyond their control, they can request a written extension from Floyds 99. However, the franchisee must obtain Floyds 99's prior written approval before executing any lease, including amendments, for the franchised location.
Floyds 99 provides assistance through its designated site selection service provider, including an on-site visit to the market area. This representative will assist with space requirements, build-out specifications, and understanding the demographics of the surrounding market area. While Floyds 99 offers this assistance, the franchisee acknowledges that the franchisor's obligation is limited to this provision and the approval or disapproval of the proposed location based on submitted information. The franchisor's approval of a site does not constitute a warranty of its suitability for a Floyds 99 shop.