How many days does Floyds 99 have as a right of first refusal to purchase the franchisee's rights?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
18.4 Right of First Refusal.
If the Franchisee wishes to transfer its rights under this Agreement or any interest in it, or any part or portion of any business entity that owns it, or all or a substantial portion of the assets of the FLOYD'S 99 Shop, the Franchisee agrees to grant to the Franchisor a 90-day right of first refusal to purchase such rights, interest or assets on the same terms and conditions as are contained in the written offer to purchase submitted to the Franchisee by the proposed purchaser; provided, however, the following additional terms and conditions shall apply:
- a.
Absence of a reply to the Franchisee's notice of a proposed sale within the 90-day period is deemed a waiver of such right of first refusal.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, if a franchisee wishes to transfer their rights, interest, or assets of the Floyds 99 shop, they must grant Floyds 99 a 90-day right of first refusal. This means Floyds 99 has the first opportunity to purchase the franchise on the same terms and conditions as a written offer submitted by a proposed purchaser. Absence of a reply to the Franchisee's notice of a proposed sale within the 90-day period is deemed a waiver of such right of first refusal.
This right of first refusal does not apply to certain transfers, such as the addition or deletion of a partner in a partnership or the transfer to a corporation or LLC controlled by the franchisee, provided certain conditions are met, such as the continuing personal guarantee of the individual and limitations on the company's business activity to operating the Floyds 99 shop.
This clause is included in most franchise agreements to allow the franchisor to maintain control over who enters the system and to protect the brand. It ensures that Floyds 99 has the option to buy back a location rather than allowing it to be sold to someone who may not meet their standards or fit within their strategic goals. For a franchisee, this means they cannot simply sell their franchise to anyone; they must first offer it to Floyds 99, potentially delaying the sale process.