To what does the Statement of Ownership apply regarding the Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon request of the Franchisor, the Franchisee shall promptly provide satisfactory proof of such ownership to the Franchisor.
The Franchisee represents that the Statement of Ownership, attached hereto as Exhibit
III and by this reference incorporated herein, is true, complete, accurate and not misleading, and, in accordance with the information contained in the Statement of Ownership, the controlling ownership of the FLOYD'S 99 Shop is held by the Franchisee. The Franchisee shall promptly provide the Franchisor with a written notification if the information contained in the Statement of Ownership changes at any time during the term of this Agreement and shall comply with the applicable transfer provisions contained in Article 17 herein. In addition, if the Franchisee is an entity, all of the owners of the Franchisee shall sign the Guaranty and Assumption of Franchisee's Obligations attached hereto as Exhibit II.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Statement of Ownership applies to the controlling ownership of the Floyds 99 Shop, certifying that the ownership information provided by the franchisee is true, complete, accurate, and not misleading. This statement, attached as Exhibit III to the Franchise Agreement, is incorporated by reference into the agreement.
The franchisee must promptly notify Floyds 99 in writing if there are any changes to the ownership information during the term of the agreement and must comply with the transfer provisions outlined in Article 17 of the agreement. This ensures that Floyds 99 maintains accurate records of who owns and controls each franchise location.
Furthermore, if the franchisee is a business entity, all owners of the franchisee must sign the Guaranty and Assumption of Franchisee's Obligations, which is included as Exhibit II to the Franchise Agreement. This requirement provides an additional layer of security for Floyds 99, ensuring that all individuals with an ownership stake in the franchise are personally liable for the franchisee's obligations under the agreement.