Is the transfer of a Floyds 99 development agreement dependent on the Franchisor's assessment of the transferee's aptitude?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.2 Pre-Conditions to Developer's Transfer.
Developer shall not engage in a transfer, as defined above, unless Developer obtains Franchisor's written consent and complies with the following requirements:
(e) The proposed transferee shall have provided information to Franchisor sufficient for Franchisor to assess the proposed transferee's business experience, aptitude and financial qualification, and Franchisor shall have ascertained that the proposed transferee meets such qualifications;
(b) Agreement by the proposed transferee to satisfactorily complete the initial training program described in this Agreement;
(c) At Franchisor's option, the transferee has agreed to be bound by all the terms and conditions of this Agreement or enters into Franchisor's then-current form of development agreement and related documents being offered to new developers (for a term ending on the expiration date of this Agreement and requiring no Development Fee), any and all of the provisions of which may differ materially from any and all of those contained in this Agreement;
(a) Payment of all amounts due and owing pursuant to this Agreement and any Franchise Agreement to Franchisor or its affiliates or payment of all amounts due and owing to third parties holding a security interest in any asset of the franchised business;
(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.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the transfer of a development agreement is indeed dependent on the franchisor's assessment of the transferee's aptitude. Specifically, the proposed transferee must provide sufficient information to allow Floyds 99 to evaluate their business experience, aptitude, and financial qualifications. Floyds 99 must then determine that the proposed transferee meets these qualifications.
This requirement means that a developer cannot simply transfer their rights to anyone. Floyds 99 retains the right to ensure that any new developer has the skills and resources necessary to successfully operate and develop Floyds 99 shops. This protects the brand and the interests of other franchisees by maintaining a standard of competence among its developers.
In addition to assessing aptitude, Floyds 99 also requires the transferee to agree to complete the initial training program, and at Floyds 99's option, agree to be bound by the current terms of the development agreement or enter into Floyds 99's then-current form of development agreement. The developer must also pay all outstanding amounts owed to Floyds 99 and provide written notice of the proposed transfer at least 90 days in advance. These stipulations ensure that the transfer process is thorough and that the new developer is fully prepared to take on the responsibilities of the agreement.