What is the purpose of the Lease Addendum for a Floyds 99 Barbershop?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall have the right, but not the obligation, to succeed to Tenant's rights upon Tenant's default by taking an assignment of Tenant's interest under this Lease and curing such default.
-
- NO RADIUS CLAUSE. Any radius restriction in the Lease related to Tenant or the operation of a FLOYD'S 99 barbershop shall be null and void.
-
- NO RELOCATION CLAUSE. Any right in the Lease which allows Landlord to relocate Tenant is hereby deleted.
-
- EXCLUSIVE. Throughout the Term, as it may be extended under the terms of this Lease, Tenant shall have the exclusive right in the Shopping Center to operate a retail hair care business which provides hair care services and sells related hair care products.
Landlord agrees that it shall not enter into any lease of space or permit any tenant to sublease or assign its lease, or sell any premises, within the Shopping Center or on any adjacent land owned or controlled by Landlord or its partners, to a person or entity with the following use: (i) a retail hair care business deriving more than 5% of its gross sales from the sale of haircuts or hair care products; or (ii) a wholesale business deriving more than 5% of its gross sales from the sale of hair care products.
If Landlord violates the terms and spirit of the exclusivity granted to Tenant above and, if such a violation occurs, in addition to any other remedies Tenant may have at law or in equity, Tenant shall have the right to terminate this Lease upon thirty (30) days prior written notice.
-
- FRANCHISOR'S MARKS & SIGNAGE. Notwithstanding any sign criteria contained in the Lease, Landlord hereby grants and approves the following:
a.
Marks.
Tenant has the right to display Franchisor's trade and service marks in accordance with the specifications required by Franchisor, subject only to the provisions of applicable law, for the term of the Lease.
- b.
Opening Signage.
Tenant shall have a license to display "Coming Soon," "Now Hiring" or "Grand Opening" banners on or near the Premises during such period from the date the Lease is executed and continuing until the date that is eight (8) weeks following the opening of the Premises; and
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 FDD, the Lease Addendum serves to protect the franchisor's interests and brand by outlining specific rights and obligations related to the leased premises.
The Lease Addendum ensures that Floyds 99 has the right to take over the tenant's (franchisee's) rights under the lease if the franchisee defaults, by taking an assignment of the lease and curing the default. It also voids any radius restrictions in the lease that might limit the operation of the Floyds 99 barbershop and eliminates any relocation clauses that would allow the landlord to move the tenant. The addendum grants the franchisee exclusive rights to operate a retail hair care business within the shopping center, preventing the landlord from leasing space to competitors.
Additionally, the Lease Addendum protects Floyds 99's marks and signage, allowing the franchisee to display the franchisor's trademarks and use "Coming Soon," "Now Hiring," or "Grand Opening" banners. It also gives Floyds 99 the right to remove trade dress and personal property from the premises upon termination or expiration of the lease or franchise agreement, ensuring consistent brand representation.
The Lease Addendum also stipulates that any modifications or amendments to the lease require Floyds 99's prior written consent, preventing changes that could negatively impact the franchisor's interests. It clarifies that the franchisee is not an agent or employee of Floyds 99, and the landlord acknowledges that the addendum does not create any liabilities for the franchisor. The benefits of the addendum extend to Floyds 99 and its successors and assigns, providing long-term protection for the franchise system.