Can the Floyds 99 franchisor assign the franchise agreement to another party?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 18.6 is deleted and the following is inserted in its place:
This Agreement is fully assignable by the Franchisor and shall inure to the benefit of any assignee or other legal successor in interest, and the Franchisor shall in such event be fully released from the same, provided no assignment shall be made except to an assignee who, in the Franchisor's good faith judgment, is willing and able to assume the Franchisor's obligations under this Agreement.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchise agreement is fully assignable by the franchisor. This means Floyds 99 Franchising, LLC can transfer the agreement to another party.
However, there is a condition. The assignment can only be made to an assignee who, in Floyds 99's good faith judgment, is willing and able to assume the franchisor's obligations under the agreement. If the assignment occurs, Floyds 99 Franchising, LLC is fully released from its obligations under the agreement.
This clause is fairly standard in franchising. It allows the franchisor flexibility in case of a merger, acquisition, or other business restructuring. However, it's important for a prospective franchisee to understand that they may be dealing with a different entity during the term of their franchise agreement. The franchisee should ensure that any potential assignee meets the standards and obligations outlined in the original agreement.