What is the minimum initial term, including renewals, required for a Floyds 99 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.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the lease for the Franchised Location must include provisions for an initial term, or an initial term combined with any renewal terms, totaling at least 10 years. The rent for any renewal terms must be specified in the lease agreement. This requirement ensures that Floyds 99 franchisees have a secure location for a sufficient period to build their business and recoup their investment.
This lease requirement is a standard practice in franchising, as it protects both the franchisee and the franchisor. For the franchisee, a long-term lease provides stability and reduces the risk of having to relocate the business. For Floyds 99, it ensures that the brand has a consistent presence in a particular location, which helps to build brand recognition and customer loyalty.
In addition to the minimum term, the lease must also include other provisions that protect Floyds 99's interests. These include clauses that allow Floyds 99 to enter the premises to protect its trademarks and licensed methods, assume the lease in the event of franchisee default, and receive notice of any defaults by the franchisee. The lease must also contain restrictive use clauses acceptable to Floyds 99. These provisions are designed to ensure that the Floyds 99 brand is protected and that the franchised location is operated in accordance with Floyds 99's standards.