Does the Floyds 99 Lease Addendum override any provision of the Lease?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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- NO RADIUS CLAUSE. Any radius restriction in the Lease related to Tenant or the operation of a FLOYD'S 99 barbershop shall be null and void.
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- NO RELOCATION CLAUSE. Any right in the Lease which allows Landlord to relocate Tenant is hereby deleted.
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- EXCLUSIVE. Throughout the Term, as it may be extended under the terms of this Lease, Tenant shall have the exclusive right in the Shopping Center to operate a retail hair care business which provides hair care services and sells related hair care products.
Landlord agrees that it shall not enter into any lease of space or permit any tenant to sublease or assign its lease, or sell any premises, within the Shopping Center or on any adjacent land owned or controlled by Landlord or its partners, to a person or entity with the following use: (i) a retail hair care business deriving more than 5% of its gross sales from the sale of haircuts or hair care products; or (ii) a wholesale business deriving more than 5% of its gross sales from the sale of hair care products.
If Landlord violates the terms and spirit of the exclusivity granted to Tenant above and, if such a violation occurs, in addition to any other remedies Tenant may have at law or in equity, Tenant shall have the right to terminate this Lease upon thirty (30) days prior written notice.
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- AMENDMENT. Franchisor's prior written consent, which will not be unreasonably withheld, must be obtained by Landlord and Tenant to cancel, terminate (including Tenant's voluntary surrender), modify or amend the Lease including, without limitation, Franchisor's rights under this Addendum. Any attempted cancellation, termination, modification, acceptance of surrender or amendment without Franchisor's consent shall be null and void and have no effect as to Franchisor's interest thereunder.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Lease Addendum does indeed have the power to override certain provisions within the standard lease agreement. Specifically, Item 23 outlines several instances where the addendum takes precedence. For example, any radius restriction in the lease that would prevent a Floyds 99 barbershop from operating is rendered null and void. Similarly, any clause allowing the landlord to relocate the tenant is deleted entirely.
Furthermore, the addendum grants Floyds 99 franchisees the exclusive right to operate a retail hair care business within the shopping center, preventing the landlord from leasing space to competitors that derive more than 5% of their gross sales from haircuts or hair care products. The addendum also dictates that the landlord must obtain Floyds 99's prior written consent before canceling, terminating, modifying, or amending the lease, thereby protecting Floyds 99's interests and rights associated with the lease agreement.
These provisions in the Floyds 99 Lease Addendum are designed to protect the franchisee's business operations and the franchisor's brand standards. By overriding conflicting clauses in the original lease, the addendum ensures that the Floyds 99 franchise can operate according to the franchisor's established model, without undue interference from the landlord. This is a common practice in franchising, where franchisors seek to maintain uniformity and protect their brand identity across all locations.