If Floyds 99 permits a relocation, must the franchisee pay a relocation fee?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not change the location of your Franchised Location or your Protected Territory without our prior written consent, which consent will not be unreasonably withheld. If, during the term of the Franchise Agreement, you wish to relocate your FLOYD'S 99 Shop, or if the FLOYD'S 99 Shop is damaged or destroyed and cannot be repaired within 60 days, you must submit to us in writing the materials we require to consider your relocation request, including information concerning the proposed new location for the FLOYD'S 99 Shop. You must also meet certain other requirements, such as being in compliance with the Franchise Agreement, the location meets our then-current requirements for a FLOYD'S 99 Shop and is located within your Protected Territory, payment of our relocation fee, and you must sign our thencurrent form of Franchise Agreement. We will use our then-current criteria in reviewing a proposed new location for your FLOYD'S 99 Shop. If we permit you to relocate, you will not pay a new initial franchise fee when you sign the new Franchise Agreement but you must pay our then-current relocation fee for our expenses related to reviewing your relocation request.
Source: Item 12 — TERRITORY (FDD pages 38–41)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, if a franchisee wishes to relocate their shop and Floyds 99 approves the relocation, the franchisee is required to pay a relocation fee. This fee covers Floyds 99's expenses for reviewing the relocation request. Additionally, the franchisee must meet several other conditions to be approved for relocation.
These conditions include being in compliance with the existing Franchise Agreement and ensuring the new location meets Floyds 99's then-current requirements for a shop. The new location must also be within the franchisee's Protected Territory. Furthermore, the franchisee must sign Floyds 99's then-current form of Franchise Agreement.
While the franchisee will not have to pay a new initial franchise fee when signing the new Franchise Agreement for the relocated shop, the relocation fee is mandatory. This fee is intended to compensate Floyds 99 for the costs associated with assessing and approving the new location. This is a fairly standard practice in franchising, as franchisors often incur costs when franchisees relocate, and the fee helps to offset those expenses.