What is the relationship between the Franchise Agreement and the General Release for a Floyds 99 franchise?
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 related to the Franchise Agreement. The General Release is made effective as of a specific date by the franchisee in favor of Floyd's 99 Franchising, LLC. The parties involved, the franchisee and Floyd's 99, have entered into a Franchise Agreement that governs the development and operation of a Floyd's 99 Barbershop.
The franchisee may desire to transfer the Franchise Agreement, the ownership of the franchisee, the Floyd's 99 Shops, or some or all of the assets of the barbershop, or to enter into a successor agreement. Floyd's 99 Franchising, LLC desires to consent to the franchisee's request, but this is subject to the franchisee's compliance with the terms and conditions set forth in the Franchise Agreement. This includes the execution and delivery of the General Release by the franchisee to Floyd's 99 Franchising, LLC.
In essence, the General Release is a condition that Floyds 99 may require for consenting to certain actions by the franchisee, such as transferring the Franchise Agreement or entering into a successor agreement. The execution of the General Release ensures that the franchisee complies with the terms outlined in the Franchise Agreement before Floyds 99 approves the franchisee's request. However, the enforceability of the general release may be limited by state laws, such as in Maryland, where it cannot waive liabilities under the Maryland Franchise Registration and Disclosure Law, or in California, where it cannot waive rights under the Franchise Investment Law or the Franchise Relations Act.