What is being guaranteed to Floyds 99 Franchising, LLC under the Guaranty and Assumption of Developer's Obligations?

According to the 2025 Floyds 99 Franchise Disclosure Document, if the developer is an entity, all of the owners of the developer must sign the Guaranty and Assumption of Developer's Obligations, which is attached as Exhibit II to the Development Agreement. This ensures that the obligations of the developer are guaranteed by the owners of the entity.

This requirement is a standard practice in franchising, particularly when dealing with business entities rather than individual franchisees. By having all owners sign the guaranty, Floyds 99 aims to secure the commitment and financial responsibility of all parties involved in the development venture. This protects Floyds 99 from potential losses if the developer entity fails to meet its obligations under the Development Agreement.

Prospective Floyds 99 developers operating as entities should be aware that all owners will be required to sign this guaranty, indicating their personal responsibility for the entity's performance. This is a significant legal and financial commitment that should be carefully considered before entering into a Development Agreement with Floyds 99.