What is the relationship between the Conditional Assignment of Lease and the construction of a Floyds 99 Shop?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
5. DEVELOPMENT OBLIGATIONS
- 5.1 Development Schedule. Acknowledging that time is of the essence, Developer agrees to exercise its development rights according to the development schedule set forth on Exhibit I to this Agreement (the "Development Schedule") and as otherwise set forth herein. Developer must construct, open and maintain in continuous operation a minimum number of FLOYD'S 99 Shops in the Development Area within the time periods mandated by the Development Schedule. Developer's failure to adhere to the Development Schedule (including any extensions approved by Franchisor in writing) will constitute a material breach of this Agreement.
Assignor and Landlord agree not to allow any surrender, amendment, modification or termination or other assignment of the Lease without the prior written consent of Assignee.
Landlord hereby consents to the terms and provisions of this Agreement, and to the conditional assignment of the Lease to Assignee.
Landlord agrees that after the Effective Date, Assignee may (i) enter into a sublease with any FLOYD'S 99 franchisee without Landlord's further consent, or (ii) further assign the Lease to a person, firm or corporation who shall agree to assume the tenant's obligations under the Lease and who is reasonably acceptable to Landlord.
Landlord further agrees that upon the occurrence of any such assignment, Assignee shall have no further liability or obligation under the Lease as Assignee, tenant or otherwise, and that concurrent with such assignment, Landlord will enter into a replacement Conditional Assignment of Lease Agreement by and between Assignee and the new tenant.
Any extensions of the time periods to open the Barbershops are subject to Franchisor's extension policy, which may change from time to time and may require Developer to pay additional fees to Franchisor.
5.3 Site Selection. Developer shall not, without the prior written approval of Franchisor, enter into any contract for the purchase or lease of any premises for use as a FLOYD'S 99 Shop. Franchisor will assist Developer in the selection and approval of locations for its Barbershops, although Developer acknowledges that Franchisor has no obligation to select or acquire a location on behalf of Developer. Assistance by Franchisor will consist of the provision of criteria for a satisfactory location and any other assistance set forth in the Franchis
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 FDD, the Conditional Assignment of Lease is related to the construction and operation of a Floyds 99 shop through the development schedule and site selection process. A developer must adhere to the development schedule, which outlines the timeline for constructing, opening, and maintaining a minimum number of Floyds 99 shops in a designated development area. Failure to meet this schedule constitutes a material breach of the agreement.
Floyds 99 requires developers to obtain prior written approval before entering into any contract for the purchase or lease of premises intended for use as a Floyds 99 shop. While Floyds 99 will assist in the selection and approval of locations by providing criteria for a satisfactory location, the developer acknowledges that Floyds 99 is under no obligation to select or acquire a location on their behalf.
Furthermore, the landlord consents to the conditional assignment of the lease to the assignee, allowing the assignee to enter into a sublease with any Floyds 99 franchisee without further consent from the landlord or assign the lease to another entity reasonably acceptable to the landlord. Upon such assignment, the assignee is released from further liability under the lease, and the landlord will enter into a replacement Conditional Assignment of Lease Agreement with the new tenant. This process ensures that the lease can be transferred to a franchisee or another suitable party, facilitating the ongoing operation of the Floyds 99 shop.