What happens if the Floyds 99 Agreement terminates or expires regarding the lease?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Floyds 99's 2025 Franchise Disclosure Document, the lease for the franchised location must contain specific provisions that protect the franchisor's interests if the franchise agreement terminates or expires. These provisions ensure that Floyds 99 can maintain control over the location and brand identity, even if the franchisee is no longer operating the business. Specifically, the lease should allow Floyds 99 to enter the premises to make modifications necessary to protect their marks and licensed methods.
One critical provision is that Floyds 99, or its designee, has the option to assume the lease. Following this assumption, Floyds 99 has the right to assign the lease or sublet the premises to another franchisee without needing further consent from the landlord. This is particularly important if the franchisee defaults under the lease or the franchise agreement terminates or expires. The lease should also require the landlord to provide Floyds 99 with written notice of any defaults by the franchisee and give Floyds 99 the right to cure those defaults.
To further secure their position, Floyds 99 requires the franchisee to conditionally assign the lease to the franchisor as security for the franchisee's performance of their obligations under the franchise agreement and the lease. This conditional assignment is formalized through Floyds 99's standard Conditional Assignment of Lease. These measures ensure that Floyds 99 has multiple avenues to maintain control over the location and continue operations with a new franchisee if necessary, safeguarding their brand and business interests.