How does Floyds 99 recognize transfer fees?

According to the 2025 Floyds 99 Franchise Disclosure Document, the franchisor addresses transfer fees in the context of specific types of transfers. Floyds 99 acknowledges that its right to approve or disapprove a proposed sale or transfer applies under certain conditions, such as changes in partnership or membership, transfer of 25% or more of ownership interests in a corporation or LLC, or transfers from an individual to a controlled entity.

However, Floyds 99 will waive any transfer fee chargeable to the developer (franchisee) under specific circumstances. This waiver applies to transfers described in subsections (1) and (3) of Section 8.5, which pertain to changes in partnership/membership or transfers from an individual to a controlled company. In these cases, Floyds 99's right of first refusal to purchase the rights does not apply, and the transfer fee is waived.

This policy benefits franchisees by reducing costs associated with certain internal restructuring or ownership changes. However, it's important to note that these waivers are conditional. For instance, if an individual transfers ownership to a corporation they control, the waiver is contingent upon the individual's continuing personal guarantee, restrictions on the company's business activities, and limitations on future ownership changes. Prospective franchisees should carefully review Section 8.5 of the Franchise Agreement to fully understand the conditions under which transfer fees are waived and the implications for their specific situation.