What is the transfer fee for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to a proposed transfer as described in subsection (1) and (3) of this Section, the Franchisor's right of first refusal to purchase, as set forth above, shall not apply and the Franchisor will waive any transfer fee chargeable to the Franchisee for a transfer under these circumstances.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
The 2025 Floyds 99 Franchise Disclosure Document outlines specific conditions regarding transfer fees. Generally, Floyds 99 requires its approval for any sale or transfer of a franchise. However, the franchisor will waive any transfer fee chargeable to the franchisee under certain circumstances.
Specifically, if the franchisee is a partnership or business association, the waiver applies to the addition or deletion of a partner or members, or the transfer of partnership or membership among existing partners or members. Similarly, if the franchisee is an individual transferring to a corporation or LLC they control, Floyds 99 will waive the transfer fee.
It is important to note that these waivers are conditional. For individual transfers to a corporation or LLC, Floyds 99 typically requires a continuing personal guarantee, restrictions on changes in ownership, limitations on the company's business activities to operating the Floyds 99 shop, and other reasonable conditions. Prospective franchisees should carefully review Section 18.5 of the franchise agreement to fully understand the conditions under which transfer fees are waived and the requirements for obtaining franchisor approval for any transfer.