Who is responsible for paying the transfer fee for a Floyds 99 development agreement transfer?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to a proposed transfer as described in subsection (1) and (3) of this Section, Franchisor's right of first refusal to purchase, as set forth above, shall not apply and Franchisor will waive any transfer fee chargeable to Developer for a transfer under these circumstances.
All expenses of the appraiser shall be paid for equally between Franchisor and Developer; and
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the development agreement outlines specific scenarios where the franchisor will waive the transfer fee. If the transfer involves a partnership or business association adding or deleting partners, or transferring partnership among existing members, Floyds 99 will waive any transfer fee normally charged to the developer. Similarly, if an individual developer transfers the agreement to a corporation or LLC they control, Floyds 99 will also waive the transfer fee.
However, this waiver is conditional. For individual-to-company transfers, Floyds 99 requires the original individual to maintain a personal guarantee for the agreement's obligations. They also stipulate that any ownership changes of 25% or more in the new company must receive prior written approval from Floyds 99. The company's business activities must also be limited to operating Floyds 99 shops and related activities.
In situations where Floyds 99 exercises its right of first refusal to purchase the development rights, interest, or assets, the expenses of an independent appraiser, if needed to determine the cash equivalent, will be split equally between Floyds 99 and the developer. This shared cost applies only when the franchisor is considering buying the rights back from the developer, not during a standard transfer to a third party.