Is a proposed transferee of a Floyds 99 franchise allowed to operate a Competitive Business?

According to the 2025 Floyds 99 Franchise Disclosure Document, a proposed transferee is not allowed to operate a Competitive Business. Specifically, one of the conditions for the transfer of a Floyds 99 franchise is that neither the proposed transferee, nor any of its direct or indirect owners or affiliates, can operate, have an ownership interest in, or perform services for a Competitive Business.

This restriction ensures that the new franchisee is fully committed to the Floyds 99 system and will not divert resources or expertise to a competing business. This is a common practice in franchising to protect the brand and maintain the integrity of the franchise system.

For a prospective franchisee, this means that if they plan to transfer their franchise in the future, the potential buyer must not be involved in any competing business. This could limit the pool of potential buyers and should be considered when evaluating the franchise opportunity.