What right does the Floyds 99 franchisor have regarding the examination of the franchised location?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.3 Inspections.
The Franchisor shall have the right to examine the Franchised Location, including the services offered and the manner in which those services are provided, inventory, products, equipment, furniture, fixtures, materials, supplies or services used or sold there, to ensure compliance with all standards and specifications set by the Franchisor.
The Franchisor shall conduct such inspections during regular business hours and the Franchisee may be present at such inspections.
The Franchisor, however, reserves the right to conduct the inspections without prior notice to the Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the franchisor has the right to examine the franchised location. This includes the services offered, how those services are provided, inventory, products, equipment, furniture, fixtures, materials, supplies, and services used or sold there. The purpose of these examinations is to ensure the franchisee's compliance with all standards and specifications set by Floyds 99.
Floyds 99 will typically conduct these inspections during regular business hours, and the franchisee has the right to be present. However, Floyds 99 also reserves the right to conduct inspections without prior notice to the franchisee. This allows the franchisor to monitor operations and ensure compliance with standards effectively.
This inspection clause is a standard practice in franchising, allowing franchisors to protect their brand and ensure consistency across all locations. For a prospective Floyds 99 franchisee, this means being prepared for both announced and unannounced inspections and maintaining operations in accordance with the franchisor's standards and specifications at all times.