What is the Floyds 99 franchisee's responsibility regarding the purchase agreement if purchasing real property?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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; (3) giving the Franchisor the right to enter the premises and make any modification necessary to protect the Marks and the Licensed Methods; (4) allowing the Franchisor, or its designee, to have the option to assume the lease and the right following such assumption to assign the lease or sublet the leased premises to another FLOYD'S 99 franchisee for all or any part of the lease term without further landlord consent if the Franchisee defaults under the lease or this Agreement or if this Agreement terminates or expires; (5) requiring the landlord to give the Franchisor written notice of any defaults by the Franchisee under such lease and the right to cure any such defaults; and (6) the lease shall also contain restrictive use clauses which are acceptable to the Franchisor.
The Franchisor reserves the right to require the Franchisee to use the Franchisor's standard form of lease instead of adding the required provisions to the landlord's form of lease, in the Franchisor's sole discretion.
The lease shall be conditionally assigned to the Franchisor as security for the Franchisee's timely performance of all obligations under this Agreement and the lease.
The Franchisee shall enter into Franchisor's standard Conditional Assignment of Lease.
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 their Franchised Location, they must obtain the franchisor's prior written approval of the purchase agreement before signing it. This requirement ensures that the location aligns with Floyds 99's standards and protects the brand's interests.
Additionally, the lease for the Franchised Location must contain specific provisions detailed in the Operations Manual. These provisions include an initial term (or initial and renewal terms with specified rent) of at least 10 years, landlord consent for the use of Floyds 99's trademarks and signage, and the franchisor's right to enter the premises to protect the Marks and Licensed Methods. The lease should also allow the franchisor to assume and assign or sublet the lease to another franchisee without further landlord consent under certain conditions, such as franchisee default or termination of the Franchise Agreement.
Furthermore, the landlord must provide written notice of any franchisee defaults to the franchisor, granting the franchisor the right to cure such defaults. The lease must also include restrictive use clauses acceptable to Floyds 99. The franchisor reserves the right to require the franchisee to use Floyds 99's standard lease form instead of adding the required provisions to the landlord's form. The lease will be conditionally assigned to the franchisor as security for the franchisee's performance under the Franchise Agreement, and the franchisee must enter into Floyds 99's standard Conditional Assignment of Lease.