What is the standard transfer fee for a Floyds 99 development agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.5 Specific Types of Transfers.
Developer acknowledges that Franchisor's right to approve or disapprove of a proposed sale or transfer, and all other requirements and rights related to such proposed sale or transfer, as provided for above, shall apply (1) if Developer is a partnership or other business association, to the addition or deletion of a partner or members of the association or the transfer of any partnership or membership among existing partners or members; (2) if Developer is a corporation or limited liability company, to any proposed transfer or assignment of 25% or more of the ownership interests of Developer, whether such transfer occurs in a single transaction or several transactions; and (3) if Developer is an individual, to the transfer from such individual or individuals to a corporation or limited liability company controlled by them, in which case Franchisor's approval will be conditioned upon: (i) the continuing personal guarantee of the individual (or individuals) for the performance of obligations under this Agreement; (ii) the issuance and/or transfer of ownership interests which would affect a change in ownership of 25% or more of the stock or membership units in the company being conditioned on Franchisor's prior written approval; (iii) a limitation on the company's business activity to that of operating
as a Developer and operator of the FLOYD'S 99 Shops developed pursuant to this Agreement and related activities; and (iv) other reasonable conditions. 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.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
I am unable to provide the standard transfer fee for a Floyds 99 development agreement, according to the 2025 Franchise Disclosure Document. While the document discusses the conditions under which Floyds 99 may approve or disapprove a sale or transfer of the development agreement, it does not specify a standard transfer fee. The FDD does mention that in specific types of transfers, Floyds 99 will waive any transfer fee chargeable to the developer.
Specifically, the FDD states that if the developer is a partnership or other business association, the franchisor's right of first refusal to purchase does not apply, and Floyds 99 will waive any transfer fee chargeable to the developer for a transfer under these circumstances. This also applies to transfers from an individual to a corporation or limited liability company controlled by them, subject to certain conditions.
To determine the standard transfer fee for a Floyds 99 development agreement, a prospective franchisee should ask the franchisor directly about the specific transfer fees associated with different types of transfers, as well as any conditions or exceptions that may apply.