Under what condition can Floyds 99 Franchising, LLC assign the Development Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement is fully assignable by the Franchisor and shall inure to the benefit of any assignee or other legal successor in interest, and the Franchisor shall in such event be fully released from the same, provided no assignment shall be made except to an assignee who, in the Franchisor's good faith judgment, is willing and able to assume the Franchisor's obligations under this Agreement.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Development Agreement is fully assignable by Floyds 99. This means Floyds 99 can transfer its rights and obligations under the agreement to another party.
However, there is a condition for this assignment. Floyds 99 can only assign the agreement to an assignee who, in Floyds 99's good faith judgment, is willing and able to assume Floyds 99's obligations under the Development Agreement. This protects the franchisee by ensuring that the party taking over the agreement has the capacity to fulfill the franchisor's responsibilities.
If Floyds 99 assigns the agreement under these conditions, Floyds 99 is then fully released from its obligations under the agreement. This means that once the assignment is complete and the new party takes over, Floyds 99 is no longer responsible for fulfilling the terms of the Development Agreement.