What is the Floyds 99 franchisee's obligation regarding the lease if purchasing real property?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
anchised 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. If the Franchisee is purchasing real property for the Franchised Location, the Franchisee shall obtain the Franchisor's prior written approval of the purchase agreement before it is signed. The lease for the Franchised Location shall contain provisions set forth in detail in the Operations Manual (defined in Section 8.1 below), which may include the following: (1) providing for an initial term, or an initial term together with any renewal terms (for which rent must be specified in the lease) of at least 10 years; (2) expressing the landlord's consent to the Franchisee's use of the Marks and all required signage for the Barbershop;
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, if a franchisee is purchasing real property for the Franchised Location, they must obtain the Franchisor's prior written approval of the purchase agreement before it is signed. This means that before committing to buy the property, the franchisee needs to submit the purchase agreement to Floyds 99 for their review and approval. This step is crucial to ensure that the location aligns with the brand's standards and business model.
This requirement protects Floyds 99 by ensuring that new locations meet their criteria. While the FDD states that Floyds 99's approval doesn't guarantee the location's suitability or profitability, it does allow them to maintain some control over where their franchises are situated. The franchisee bears the ultimate responsibility for assessing the location's viability, and Floyds 99's review is solely for their own benefit.
In practice, this means a prospective Floyds 99 franchisee should factor in the time needed for this approval process when negotiating a purchase agreement. They should also independently verify the suitability and profitability of the location, as Floyds 99's approval is not an endorsement. Failing to obtain this approval before signing the purchase agreement could lead to complications or even a breach of the franchise agreement.