Does Floyds 99 reserve the right to require the use of its standard form of lease?

According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 does reserve the right to require franchisees to use its standard lease form. Specifically, Floyds 99 can mandate the use of its standard lease instead of allowing franchisees to add required provisions to a landlord's existing lease form. This decision is at Floyds 99's sole discretion.

This provision means that prospective Floyds 99 franchisees might not have the flexibility to negotiate lease terms directly with landlords. Instead, they may be required to use Floyds 99's pre-approved lease agreement, which could have terms more favorable to the franchisor.

Furthermore, the FDD states that franchisees must obtain Floyds 99's prior written approval before executing any lease, including amendments, or purchase agreements if buying the property. The lease must include specific provisions detailed in the Operations Manual, such as a minimum 10-year term, landlord consent for the use of Floyds 99's marks and signage, Floyds 99's right to enter and modify the premises to protect its marks, the option for Floyds 99 to assume the lease in case of franchisee default, and the landlord's obligation to notify Floyds 99 of any franchisee defaults with the right to cure them. The lease must also contain restrictive use clauses acceptable to Floyds 99. The lease will be conditionally assigned to Floyds 99 as security for the franchisee's obligations.

Therefore, a potential franchisee should carefully review Floyds 99's standard lease form and understand all its terms and conditions before signing the franchise agreement. It would be prudent to seek legal counsel to fully understand the implications of using the franchisor's standard lease and the restrictions it may impose.