What are the pre-conditions that a Floyds 99 franchisee must meet before transferring the franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
tion to the Franchisor sufficient for the Franchisor to assess the proposed transferee's business experience, aptitude and financial qualification, and the Franchisor shall have ascertained that the proposed transferee meets such qualifications;
- f. Execution by Franchisee of a general release, in a form satisfactory to the Franchisor, of any and all claims against the Franchisor, its affiliates and their respective officers, directors, employees and agents;
- g. Payment by the Franchisee or the proposed transferee of $7,500;
- h. Neither the proposed transferee nor any of its direct or indirect owners or affiliates operates, has an ownership interest in or performs services for a Competitive Business; and
- i. Agreement by the Franchisee to abide by the post-termination covenant not to compete set forth in Section 22.2 below.
The Franchisor will not unreasonably withhold, delay or condition its consent to any proposed transfer by the Franchisee which requires the Franchisor's consent under this Section 18.2.
18.3 Franchisor's Approval of Transfer. The Franchisor has 90 days from the date of the written notice of the proposed transfer to approve or disapprove in writing, of the Franchisee's proposed transfer. The Franchisee acknowledges that the proposed transferee shall be evaluated for approval by the Franchisor based on the same criteria as is currently being used to assess new franchisees of the Franchisor and that such proposed transferee shall be provided, if appropriate, with such disclosures as may be required by state or federal law. If the Franchisee and the proposed transferee comply with all conditions for assignment set forth herein and the Franchisor has not given the Franchisee notice of its approval or disapproval within the
90-day period, approval is deemed granted. The Franchisor's approval of any transfer shall not constitute approval for any subsequent transfer or a waiver of any of the Franchisor's rights under this Article 18.
- 18.4 Right of First Refusal. If the Franchisee wishes to transfer its rights under this Agreement or any interest in it, or any
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, a franchisee must meet certain conditions before transferring their franchise. These include paying Floyds 99 a fee of $7,500. Additionally, the proposed transferee (the person or entity buying the franchise) cannot operate, have an ownership interest in, or work for a competing business.
Furthermore, the franchisee must agree to abide by the post-termination covenant not to compete, which restricts their ability to engage in similar business activities after the franchise agreement ends. Floyds 99 states that it will not unreasonably withhold, delay, or condition its consent to any proposed transfer if the franchisee meets these requirements.
Floyds 99 has 90 days from the date of written notice of the proposed transfer to either approve or disapprove the transfer in writing. The prospective buyer will be evaluated using the same criteria used for new franchisees and will receive any disclosures required by law. If the franchisee and the proposed transferee meet all the conditions and Floyds 99 does not provide notice of approval or disapproval within the 90-day period, the approval is considered granted. However, Floyds 99's approval of a transfer does not mean approval for any later transfers or a waiver of any of Floyds 99's rights under the franchise agreement.
Finally, 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 to purchase those rights, interest, or assets on the same terms and conditions as the written offer from the proposed purchaser.