What is the significance of the earliest date on which the Development Agreement or Franchise Agreement was signed according to the Floyds 99 Closing Acknowledgement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT K (TO DISCLOSURE DOCUMENT)
GENERAL RELEASE
THIS GENERAL RELEASE ("Release") is made effective as of the day of, 20 by ("Franchisee") in favor of FLOYD'S 99 FRANCHISING, LLC, a Colorado limited liability company ("Franchisor") (collectively referred to as "Parties"). The Parties have entered into that certain Franchise Agreement dated ("Franchise Agreement") which governs the development and operation of a FLOYD'S 99 Barbershop ("FLOYD'S 99 Shop" or "Barbershop") (to the extent not otherwise defined herein, all initial-capitalized references shall have the same meaning as set forth in the Franchise Agreement). The Franchisee desires to transfer the Franchise Agreement, the ownership of the Franchisee, or the FLOYD'S 99 Shops or some or all of the assets of the Barbershop.
OR
The Franchisee desires to enter into a successor to the Franchise Agreement.
The Franchisor desires to consent to the Franchisee's request subject to the Franchisee's compliance with the terms and conditions set forth in the Franchise Agreement including, without limitation, the execution and delivery by the Franchisee to the Franchisor of this Release.
NOW, THEREFORE, in consideration of the foregoing, the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties hereby agree as follows:
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
Based on the 2025 Floyds 99 Franchise Disclosure Document, the date on which the Development Agreement or Franchise Agreement was signed is a critical reference point for several aspects of the franchise relationship. Specifically, the General Release document refers to the Franchise Agreement's date as a key element. This date establishes the effective start of the agreement between the franchisee and Floyds 99 Franchising, LLC, governing the development and operation of a Floyds 99 Barbershop.
The date of the Franchise Agreement is essential when a franchisee desires to transfer the agreement, ownership, or assets of the barbershop, or to enter into a successor agreement. Floyds 99 Franchising, LLC's consent to such requests is contingent upon the franchisee's compliance with the terms and conditions set forth in the Franchise Agreement, including the execution and delivery of the General Release. Therefore, the initial signing date serves as the foundation upon which any subsequent modifications or transfers are based.
For a prospective Floyds 99 franchisee, understanding the implications tied to this date is crucial. It marks the beginning of their contractual obligations and rights, influencing future decisions regarding the business's operation, potential sale, or renewal. Franchisees should keep accurate records of this date and all related documents to ensure compliance and to facilitate any future transactions or modifications to their franchise agreement.