What is the Floyds 99 franchisee's obligation to request an extension for site selection?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
5.1 Approval of Franchised Location. Within two hundred seventy (270) days after the date of execution of this Agreement, the Franchisee shall locate a Franchised Location which is suitable for the operation of the FLOYD'S 99 Shop, have it approved by the Franchisor and sign the lease. If the Franchisee has made reasonable and continuing efforts to locate a Franchised Location, but site availability considerations beyond the control of the Franchisee prevent the selection of a suitable site, the Franchisor will extend the deadline to select a Franchised Location for a reasonable time if the Franchisee requests, in writing, an extension of the time to have the Franchised Location selected before such selection period lapses. 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.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, a franchisee has 270 days from the franchise agreement's execution date to locate, have the franchisor approve, and sign a lease for a suitable location. If the franchisee faces site availability issues beyond their control despite reasonable and continuing efforts, they must request a written extension from the franchisor before the initial selection period expires.
This extension request is crucial because it allows Floyds 99 franchisees to maintain compliance with the franchise agreement when unforeseen circumstances delay site selection. By requesting an extension in writing before the deadline, the franchisee demonstrates their ongoing commitment and provides the franchisor an opportunity to grant a reasonable extension. This proactive approach can prevent potential breaches of contract and maintain a positive working relationship with Floyds 99.
It is important to note that the franchisor's willingness to extend the deadline depends on the franchisee's documented efforts to find a suitable location and the validity of the reasons for the delay. The franchisor also requires the franchisee to follow their site selection procedures, including using their designated site selection service provider. Therefore, franchisees should diligently document their site search activities and maintain open communication with both the franchisor and the designated service provider to ensure a smooth site selection process and a higher likelihood of extension approval if needed.