What are some reasons a Floyds 99 franchisee might desire to transfer the Franchise Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT K (TO DISCLOSURE DOCUMENT)
GENERAL RELEASE
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.
NOW, THEREFORE, in consideration of the foregoing, the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties hereby agree as follows:
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, a franchisee may want to transfer the Franchise Agreement for various reasons. Exhibit K, the General Release form, indicates a franchisee might desire to transfer the Franchise Agreement, the ownership of the franchisee, the Floyds 99 Shops, or some or all of the assets of the barbershop.
This suggests several scenarios where a transfer might be considered. A franchisee could be looking to sell their entire business, including the franchise rights, to a new owner. Alternatively, they might want to transfer ownership of the franchisee entity itself, which could involve changes in the ownership structure of the company that holds the franchise. Another possibility is the sale of the Floyds 99 shop's assets, which might occur if the franchisee is restructuring their business or selling off parts of it.
In any of these cases, Floyds 99 Franchising, LLC requires the franchisee to comply with the terms and conditions set forth in the Franchise Agreement, including the execution and delivery of a General Release. This release likely protects the franchisor from future claims related to the transferred business. A prospective franchisee should carefully review the Franchise Agreement and the General Release to understand the full implications of transferring ownership or assets.