What is the purpose of the Franchisee entering into a successor to the Franchise Agreement with Floyds 99?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee desires to transfer the Franchise Agreement, the ownership of the Franchisee, or the FLOYD'S 99 Shops or some or all of the assets of the Barbershop.
OR
The Franchisee desires to enter into a successor to the Franchise Agreement.
The Franchisor desires to consent to the Franchisee's request subject to the Franchisee's compliance with the terms and conditions set forth in the Franchise Agreement including, without limitation, the execution and delivery by the Franchisee to the Franchisor of this Release.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a franchisee may want to enter into a successor agreement to their existing Franchise Agreement. The General Release exhibit outlines two potential scenarios where this might occur.
One scenario is when the franchisee desires to transfer the Franchise Agreement, ownership of the franchise, Floyds 99 shops, or some or all of the assets of the barbershop. In this case, a successor agreement would facilitate the transfer of rights and obligations to a new franchisee or owner.
The second scenario is when the franchisee simply desires to enter into a successor agreement. In both situations, Floyds 99 desires to consent to the franchisee's request, but this is subject to the franchisee's compliance with the terms and conditions set forth in the Franchise Agreement, including the execution and delivery of a release to Floyds 99. This release likely protects Floyds 99 from any potential liabilities or claims arising from the transfer or the new agreement.