What is the purpose of the General Release in the Floyds 99 Franchise Disclosure Document?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS GENERAL RELEASE ("Release") is made effective as of the day of, 20 by ("Franchisee") in favor of FLOYD'S 99 FRANCHISING, LLC, a Colorado limited liability company ("Franchisor") (collectively referred to as "Parties"). The Parties have entered into that certain Franchise Agreement dated ("Franchise Agreement") which governs the development and operation of a FLOYD'S 99 Barbershop ("FLOYD'S 99 Shop" or "Barbershop") (to the extent not otherwise defined herein, all initial-capitalized references shall have the same meaning as set forth in the Franchise Agreement). 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, the General Release is an agreement executed by the franchisee in favor of Floyds 99 Franchising, LLC. This release is required when a franchisee desires to transfer their Franchise Agreement, ownership of the franchise, or the Floyds 99 Shops, or some or all of the assets of the barbershop. It is also required if the franchisee wants to enter into a successor agreement to the existing Franchise Agreement.
The purpose of the General Release is to protect Floyds 99's interests by ensuring that the franchisee complies with all terms and conditions of the Franchise Agreement before the franchisor consents to the transfer or successor agreement. This includes the franchisee's execution and delivery of the Release to the franchisor. The Release serves as a comprehensive waiver of potential claims the franchisee may have against Floyds 99, providing legal protection to the franchisor during these transitions.
However, it's important to note that the enforceability and scope of such releases can vary by state. For example, addenda for states like Indiana, Maryland, and Minnesota specify that these releases do not apply to claims arising under their respective state franchise laws. In California, certain waivers of rights under the Franchise Investment Law and Franchise Relations Act are void. Therefore, prospective Floyds 99 franchisees should carefully review the state-specific addenda and consult with legal counsel to understand the implications of signing a General Release in their particular state.