Is the Floyds 99 Franchisor obligated to approve a transfer if all pre-conditions are met?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor will not unreasonably withhold, delay or condition its consent to any proposed transfer by the Franchisee which requires the Franchisor's consent under this Section 18.2.
18.3 Franchisor's Approval of Transfer. The Franchisor has 90 days from the date of the written notice of the proposed transfer to approve or disapprove in writing, of the Franchisee's proposed transfer. The Franchisee acknowledges that the proposed transferee shall be evaluated for approval by the Franchisor based on the same criteria as is currently being used to assess new franchisees of the Franchisor and that such proposed transferee shall be provided, if appropriate, with such disclosures as may be required by state or federal law. If the Franchisee and the proposed transferee comply with all conditions for assignment set forth herein and the Franchisor has not given the Franchisee notice of its approval or disapproval within the
90-day period, approval is deemed granted. The Franchisor's approval of any transfer shall not constitute approval for any subsequent transfer or a waiver of any of the Franchisor's rights under this Article 18.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 will not unreasonably withhold, delay, or condition its consent to any proposed transfer by the franchisee that requires consent. Floyds 99 has 90 days from the date of the written notice of the proposed transfer to either approve or disapprove the transfer in writing.
Floyds 99 will evaluate the proposed transferee based on the same criteria used to assess new franchisees and will provide the transferee with any disclosures required by state or federal law. If the franchisee and the proposed transferee comply with all the conditions for assignment and Floyds 99 does not provide notice of approval or disapproval within the 90-day period, approval is considered granted.
This means that if a Floyds 99 franchisee finds a qualified buyer and meets all the requirements for transferring the franchise, Floyds 99 cannot arbitrarily deny the transfer. However, Floyds 99 retains the right to evaluate the buyer and ensure they meet the brand's standards for new franchisees. The 90-day review period gives Floyds 99 ample time to conduct its due diligence. If Floyds 99 fails to respond within 90 days, the transfer is automatically approved, which protects the franchisee from undue delays.