What is the relationship between the Tenant and the Floyds 99 Franchise Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Conditional Assignment. Additionally, the Franchise Agreement requires that the Lease contain certain
provisions which, to the extent not incorporated into the Lease, are set forth herein.
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- ASSIGNMENT PROVISIONS. Tenant shall have the right to assign this Lease or sublet the Premises, without charge and without Landlord's consent being required: (i) to Franchisor, its parents, subsidiaries or affiliates, (ii) to duly authorized franchisees of Franchisor, (iii) in connection with a merger, acquisition, reorganization or consolidation, or (iv) in connection with the sale of Tenant's corporate stock or assets. In the event of such an assignment, Tenant shall automatically be released from all obligations under this Lease. Landlord understands and agrees that, in connection with Tenant's assignment or subletting of the Lease to a duly authorized franchisee of Franchisor, Franchisor shall be permitted to charge "additional rent" or "percentage rent" or other charges to its franchisee as part of its regular plan of franchising, and Landlord shall not be entitled to any consideration or additional rent as a result of any fees paid to Franchisor by franchisee pursuant to the Lease or otherwise.
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- NOTICE TO FRANCHISOR. Prior to the enforcement of any remedies under the Lease, Landlord agrees to provide Franchisor with written notice of Tenant's default under the Lease. Franchisor shall have ten (10) days after such notice to cure monetary defaults and thirty (30) days after such notice to cure non-monetary defaults. Notice to Franchisor shall be addressed as follows:
Floyd's 99 Franchising, LLC Attn: Leasing/Real Estate 7900 E. Berry Place Greenwood Village, CO 80111
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.
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- RELATIONSHIP OF TENANT AND FRANCHISOR. Landlord acknowledges that Tenant is not an agent or employee of Franchisor and Tenant has no authority or power to act for, or to create any liability on behalf of, or to in any way bind Franchisor or any affiliate of Franchisor, and that Landlord has entered into this Addendum with the full understanding that it creates no duties, obligations or liabilities of or against Franchisor or any Franchisor Party.
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- AMENDMENT. Franchisor's prior written consent, which will not be unreasonably withheld, must be obtained by Landlord and Tenant to cancel, terminate (including Tenant's voluntary surrender), modify or amend the Lease including, without limitation, Franchisor's rights under this Addendum. Any attempted cancellation, termination, modification, acceptance of surrender or amendment without Franchisor's consent shall be null and void and have no effect as to Franchisor's interest thereunder.
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- REMOVAL OF TRADE DRESS/PERSONAL PROPERTY. Tenant shall have fifteen (15) days from the termination or expiration of the Lease to remove Tenant's property and trade dress from
the Premises. Landlord further agrees that, upon the earlier of the expiration or termination of the Franchise Agreement or the Lease or upon any Default under the Lease or any default under the Franchise Agreement, Franchisor will have the right, but not the obligation, at Franchisor's sole cost, to enter upon the Premises and to remove any or all furniture, fixtures, equipment and all trade names, trade dress and other trade indicia associated with Franchisor, including, without limitation, Tenant's property, external and internal signage and all trade dress and design characteristics identifying the Premises as a FLOYD'S 99 franchise. Franchisor agrees to promptly repair any damage to the Premises caused by such removal or modifications. Franchisor will have fifteen (15) days from the later of (1) receipt of such notice of expiration or termination to remove such items, and (2) Franchisor's discovery that Tenant has failed to remove such items.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Tenant, typically the franchisee, enters into a lease agreement with a landlord for the premises of their Floyds 99 shop. The Franchise Agreement requires that the lease contain certain provisions. To ensure Floyds 99's interests are protected, a Lease Addendum is often included, which outlines the relationship and responsibilities of the tenant, landlord, and franchisor.
Floyds 99 maintains certain rights and controls related to the lease. For instance, the landlord must obtain Floyds 99's written consent before canceling, terminating, modifying, or amending the lease. This ensures that the terms of the lease remain consistent with Floyds 99's brand standards and operational requirements. Additionally, Floyds 99 has the right, but not the obligation, to enter the premises and remove any trade dress or signage associated with the Floyds 99 brand upon the termination or expiration of the lease or Franchise Agreement. This provision allows Floyds 99 to protect its brand identity and prevent unauthorized use of its trademarks.
The Lease Addendum also clarifies that the tenant is not an agent or employee of Floyds 99, and the tenant cannot act for or bind Floyds 99 in any way. This provision protects Floyds 99 from liabilities or obligations arising from the tenant's actions. The landlord acknowledges that the Lease Addendum creates no duties, obligations, or liabilities for Floyds 99. Furthermore, Floyds 99 is to be notified of any defaults under the lease, giving them the option to cure the default or take over the lease. This multi-party agreement helps to protect the interests of all parties involved and ensures the continued operation and brand consistency of the Floyds 99 franchise.