Can Floyds 99 require the transferee to agree to the then-current form of development agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) At Franchisor's option, the transferee has agreed to be bound by all the terms and conditions of this Agreement or enters into Franchisor's then-current form of development agreement and related documents being offered to new developers (for a term ending on the expiration date of this Agreement and requiring no Development Fee), any and all of the provisions of which may differ materially from any and all of those contained in this Agreement;
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 has the option to require a transferee to agree to the then-current form of development agreement. Specifically, Floyds 99 can require that the transferee agree to be bound by all the terms and conditions of the original agreement or enter into Floyds 99's current development agreement.
This new agreement would be for a term ending on the expiration date of the original agreement and would not require a Development Fee. However, the new agreement's provisions may differ significantly from the original agreement.
For a prospective franchisee, this means that if they decide to transfer their development rights, the person or entity they transfer to might have to agree to a completely different set of terms and conditions than what the original franchisee agreed to. This could impact the value and attractiveness of the transfer.