What happens if a Floyds 99 Franchisee makes an unauthorized transfer of the franchise?

According to Floyds 99's 2025 Franchise Disclosure Document, if a franchisee sells, transfers, or assigns the franchise, an interest in the franchise, the Franchise Agreement, the FLOYD'S 99 Shop, or a substantial portion of the assets of the FLOYD'S 99 Shop without complying with the provisions of Article 18, it constitutes an unauthorized transfer. This is grounds for termination of the Franchise Agreement by Floyds 99.

Article 18 likely outlines the specific procedures and requirements that a franchisee must follow to obtain approval for a transfer, such as providing financial information about the proposed transferee, paying a transfer fee, and ensuring that the transferee meets Floyds 99's qualifications. Failure to adhere to these procedures gives Floyds 99 the right to terminate the agreement.

This provision protects Floyds 99 by ensuring that any transfer of the franchise meets their standards and maintains the integrity of the brand. It allows Floyds 99 to control who becomes a franchisee and to ensure that the new franchisee is qualified and capable of operating the business successfully. Prospective franchisees should carefully review Article 18 to understand the requirements for transferring their franchise and the potential consequences of failing to comply.