Are there any financial thresholds that the proposed transferee must meet to be approved by Floyds 99?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
se contained in this Agreement;
- (d) Provision by Developer of written notice to Franchisor at least 90 days prior to the proposed effective date of the transfer, such notice to contain information reasonably detailed to enable Franchisor to evaluate the terms and conditions of the proposed transfer. If Developer is an entity and one or more owners of Developer entity wish to transfer, sell, assign, or otherwise dispose of his or her interest in Developer entity or if Developer entity wishes to make a public or private offer of its stock or other ownership interests, Developer must submit to Franchisor at least 90 days in advance of the proposed effective date, and obtain Franchisor's prior written approval, of the documents effectuating the transfer, sale, assignment, offering or disposition;
- (e) The proposed transferee shall have provided information to
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 FDD, a proposed transferee must meet certain qualifications for the transfer to be approved. Floyds 99 requires the proposed transferee to provide sufficient information for the franchisor to assess their business experience, aptitude, and financial qualifications. Floyds 99 must ascertain that the proposed transferee meets these qualifications.
This means that if a franchisee wants to sell their Floyds 99 franchise, the person or entity buying it must demonstrate they have the skills and resources to successfully run the business. This is a standard practice in franchising to protect the brand and ensure new operators are capable.
Additionally, the franchisee (referred to as the Developer) must pay all outstanding amounts owed to Floyds 99 or its affiliates, as well as any amounts owed to third parties holding a security interest in the franchised business. The Developer or the proposed transferee must also pay a transfer fee of $7,500, plus an additional $5,000 for every undeveloped barbershop for which no Franchise Agreement has been executed. The proposed transferee cannot operate, have an ownership interest in, or perform services for a competitive business.