What is the purpose of the 90-day notice requirement for a Floyds 99 franchise transfer?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
nsferee 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.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 requires a 90-day notice period to evaluate and approve or disapprove a proposed franchise transfer. This 90-day window allows Floyds 99 to assess the proposed transferee based on the same criteria used for new franchisees.
This evaluation period ensures that any potential new franchisee meets Floyds 99's standards and is capable of maintaining the brand's reputation and operational consistency. Floyds 99 will also provide the potential transferee with any disclosures required by state or federal law during this time. If Floyds 99 fails to provide notice of approval or disapproval within the 90-day timeframe, the transfer is automatically deemed approved.
Additionally, if a franchisee wishes to transfer their rights, Floyds 99 also has a 90-day right of first refusal to purchase the franchise on the same terms offered by the proposed purchaser. However, failure to respond to the franchisee's notice within this 90-day period constitutes a waiver of this right of first refusal. This process allows Floyds 99 to maintain control over who enters the franchise system and to ensure that any new franchisee aligns with their brand values and operational standards.
The approval of a transfer does not constitute approval for any subsequent transfer or a waiver of any of Floyds 99's rights under the franchise agreement. This means that each transfer is evaluated independently, and Floyds 99 retains its rights and control over future transfers, ensuring long-term brand consistency and quality control.