What is the Floyds 99 franchisee's obligation regarding lease amendments?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
sapprove 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 the 2025 Floyds 99 Franchise Disclosure Document, a franchisee must obtain the franchisor's prior written approval before executing any lease, including all lease amendments, for the franchised location. This requirement ensures that Floyds 99 maintains control over the locations of its franchises and that the lease terms are favorable and consistent with the brand's standards.
Furthermore, the franchisee is required to deliver a copy of the signed lease, including all lease amendments, to Floyds 99 within 15 days of its execution. This allows Floyds 99 to keep accurate records of all lease agreements and to ensure that the franchisee is complying with the terms of the lease. The lease for the franchised location must contain specific provisions detailed in the Operations Manual, such as terms of at least 10 years, consent for using Floyds 99's marks and signage, and the franchisor's right to enter the premises for modifications to protect the marks and methods.
Floyds 99 also requires that the lease includes clauses that allow the franchisor to assume the lease 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 written notice of any defaults by the franchisee and allow Floyds 99 to cure these defaults. Additionally, the lease must contain restrictive use clauses acceptable to Floyds 99. These stipulations protect Floyds 99's interests and ensure consistency across all franchise locations.
Floyds 99 retains the right to mandate the use of its standard lease form instead of incorporating the required provisions into the landlord's lease form. The franchisee must also enter into Floyds 99's standard Conditional Assignment of Lease, which conditionally assigns the lease to Floyds 99 as security for the franchisee's performance under the franchise agreement and the lease itself. This comprehensive oversight ensures that the franchisee adheres to Floyds 99's standards and protects the franchisor's brand and operational integrity.