Does the Floyds 99 General Release apply to affiliates of the Franchisor?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS GENERAL RELEASE ("Release") is made effective as of the day of, 20 by ("Franchisee") in favor of FLOYD'S 99 FRANCHISING, LLC, a Colorado limited liability company ("Franchisor") (collectively referred to as "Parties"). The Parties have entered into that certain Franchise Agreement dated ("Franchise Agreement") which governs the development and operation of a FLOYD'S 99 Barbershop ("FLOYD'S 99 Shop" or "Barbershop") (to the extent not otherwise defined herein, all initial-capitalized references shall have the same meaning as set forth in the Franchise Agreement). The Franchisee desires to transfer the Franchise Agreement, the ownership of the Franchisee, or the FLOYD'S 99 Shops or some or all of the assets of the Barbershop.
OR
The Franchisee desires to enter into a successor to the Franchise Agreement.
The Franchisor desires to consent to the Franchisee's request subject to the Franchisee's compliance with the terms and conditions set forth in the Franchise Agreement including, without limitation, the execution and delivery by the Franchisee to the Franchisor of this Release.
NOW, THEREFORE, in consideration of the foregoing, the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties hereby agree as follows:
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
Based on the 2025 Floyds 99 Franchise Disclosure Document, the General Release primarily concerns the relationship between the franchisee and Floyds 99 Franchising, LLC (the franchisor). The General Release is required when a franchisee seeks to transfer their Franchise Agreement, ownership, or assets, or when entering into a successor agreement. The franchisor's consent to these actions is contingent upon the franchisee executing and delivering the General Release.
However, the FDD does not explicitly state that the General Release extends to the franchisor's affiliates. The document outlines the conditions under which the franchisee must provide the release to the franchisor, but it remains silent on whether affiliates of Floyds 99 are also beneficiaries or parties to this release.
While the provided excerpts do not directly address whether the General Release applies to affiliates of Floyds 99 Franchising, LLC, there is a mention of affiliates in the context of Anti-Terrorism Laws. Specifically, a violation of these laws by the developer or its affiliates can lead to the termination of agreements with the franchisor or its affiliates. This suggests that affiliates do have some bearing on the franchise agreement. To fully understand the scope of the General Release and its applicability to affiliates, a prospective franchisee should seek clarification from Floyds 99 regarding this specific point.