What are the pre-conditions that a Floyds 99 developer must meet before transferring the development agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
- 8.2 Pre-Conditions to Developer's Transfer.
Developer shall not engage in a transfer, as defined above, unless Developer obtains Franchisor's written consent and complies with the following requirements:
(a) Payment of all amounts due and owing pursuant to this Agreement and any Franchise Agreement to Franchisor or its affiliates or payment of all amounts due and owing to third parties holding a security interest in any asset of the franchised business;
(b) Agreement by the proposed transferee to satisfactorily complete the initial training program described in this Agreement;
(c) At Franchisor's option, the transferee has agreed to be bound by all the terms and conditions of this Agreement or enters into Franchisor's then-current form of development agreement and related documents being offered to new developers (for a term ending on the expiration date of this Agreement and requiring no Development Fee), any and all of the provisions of which may differ materially from any and all of those contained in this Agreement;
(d) Provision by Developer of written notice to Franchisor at least 90 days prior to the proposed effective date of the transfer, such notice to contain information reasonably detailed to enable Franchisor to evaluate the terms and conditions of the proposed transfer.
If Developer is an entity and one or more owners of Developer entity wish to transfer, sell, assign, or otherwise dispose of his or her interest in Developer entity or if Developer entity wishes to make a public or private offer of its stock or other ownership interests, Developer must submit to Franchisor at least 90 days in advance of the proposed effective date, and obtain Franchisor's prior written approval, of the documents effectuating the transfer, sale, assignment, offering or disposition;
(e) The proposed transferee shall have provided information to Franchisor sufficient for Franchisor to assess the proposed transferee's business experience, aptitude and financial qualification, and Franchisor shall have ascertained that the proposed transferee meets such qualifications;
(f) Execution by Developer of a general release, in a form satisfactory to Franchisor, of any and all claims against Franchisor, its affiliates and their respective officers, directors, employees and agents;
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, a developer looking to transfer their development agreement must first obtain written consent from Floyds 99 and fulfill several requirements. These preconditions ensure that any transfer aligns with Floyds 99's standards and protects the brand's interests.
Specifically, the developer must ensure that all outstanding payments to Floyds 99, its affiliates, or any third parties holding a security interest in the franchised business's assets are settled. The proposed transferee must also satisfactorily complete the initial training program. Floyds 99, at its discretion, may require the transferee to agree to the existing development agreement's terms or enter into Floyds 99's then-current form of development agreement, which may have different provisions.
Additionally, the developer must provide Floyds 99 with a written notice at least 90 days before the proposed transfer date, including detailed information about the transfer terms. The proposed transferee must supply sufficient information for Floyds 99 to evaluate their business experience, aptitude, and financial qualifications, ensuring they meet Floyds 99's standards. Finally, the developer must execute a general release, in a form satisfactory to Floyds 99, releasing any claims against Floyds 99 and its affiliates.