What is the process for Floyds 99 to match an offer for a developer's business?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| Agreement or other agreements, notice of termination of Franchise Agreement delivered to Developer by Franchisor or Developer terminates a Franchise Agreement without cause. | |||
| i. | Franchisee's obligations on termination / nonrenewal | Section 9.3 | Loss of development rights, cease use of Marks and confidential information except in connection with Barbershops currently operating; covenant not to compete. |
| j. | Assignment of contract by franchisor | Section 8.6 | No restriction on our right to assign. |
| k. | "Transfer" by franchisee – definition | Sections 8.1 and 8.5 | Includes transfer of interest in Development Agreement, or in the franchisee entity. |
| 1. | Franchisor's approval of transfer by franchisee | Section 8.3 | We or our designee have the right to approve all transfers. |
| m. | Conditions for franchisor approval of transfer | Sections 8.2 and 8.3 | Notice, transferee qualifies, all amounts due are paid in full, payment of transfer fee, then current contract signed, franchisee signs general release and noncompetition covenant. |
| n. | Franchisor's right of first refusal to acquire franchisee's business | Section 8.4 | We can match any offer. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, Floyds 99 has the right of first refusal to acquire a developer's business. This means that if a developer receives an offer to buy their Floyds 99 business, Floyds 99 has the option to match that offer and purchase the business themselves.
This right is detailed within Section 8.4 of the Development Agreement. The FDD states explicitly, "We can match any offer." This clause gives Floyds 99 significant control over who becomes a franchisee within their system, even in cases where an existing franchisee wants to sell their business to a third party.
For a prospective Floyds 99 developer, this means that selling their business may not be as straightforward as finding a buyer and agreeing to terms. Floyds 99 has the power to step in and preempt the sale if they choose. It is important for potential developers to understand this right of first refusal and consider its implications when planning their exit strategy.