What is the minimum initial term 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 an initial term, or an initial term combined with any renewal terms, that totals 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 substantial period, allowing them to build their business and recoup their initial investment. It also protects the brand's presence in a specific market. The franchisor maintains control over the location by requiring prior written approval of any lease, including amendments, and mandating specific provisions in the lease agreement.
In addition to the minimum term, the lease must include clauses that: allow the landlord's consent to the franchisee's use of Floyds 99's marks and signage, grant Floyds 99 the right to enter the premises for modifications to protect their marks, and give Floyds 99 the option to assume the lease under certain conditions. The lease must also contain restrictive use clauses acceptable to Floyds 99, further ensuring the location aligns with the brand's standards and operational needs. These stipulations are typical in franchise agreements to protect the franchisor's brand and maintain uniformity across all locations.