Does Floyds 99 reserve the right to modify the required provisions in the primary lease?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
We must approve any lease, including all lease amendments, or, if applicable, any purchase agreement for your Barbershop before you execute any of these agreements. Then, a copy of the signed lease is to be delivered to us within 15 days after signing. You must sign a lease for the Franchised Location within two hundred seventy (270) days of signing the Franchise Agreement. The primary lease must contain certain provisions which grant us certain rights, as your franchisor, and we reserve the right to modify these required provisions. You are responsible for obtaining the landlord's consent to those terms specified.
You and your landlord must sign our Lease Addendum and Conditional Assignment of Lease, which are attached to this Disclosure Document as Exhibit L. The Lease Addendum generally protects our rights under the Franchise Agreement. Under the Conditional Assignment of Lease, we can take possession of the Franchised Location if you violate the lease or any obligation to us. You will remain responsible for all obligations under the lease prior to the date when we take possession.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–29)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, Floyds 99 has specific requirements regarding the lease for the franchisee's location. Before a franchisee signs any lease or purchase agreement for their Barbershop, Floyds 99 must approve it, including all amendments. The franchisee is then required to provide a copy of the signed lease to Floyds 99 within 15 days of signing. The lease must be signed within 270 days of signing the Franchise Agreement.
The primary lease must contain provisions that grant Floyds 99 certain rights as the franchisor. Floyds 99 retains the right to modify these required provisions. The franchisee is responsible for ensuring that the landlord consents to these specified terms. Additionally, the franchisee and landlord must sign Floyds 99's Lease Addendum and Conditional Assignment of Lease, included as Exhibit L in the FDD.
The Lease Addendum is designed to protect Floyds 99's rights under the Franchise Agreement. The Conditional Assignment of Lease allows Floyds 99 to take possession of the Franchised Location if the franchisee violates the lease or any obligation to Floyds 99. However, the franchisee remains responsible for all obligations under the lease until Floyds 99 takes possession.