Under what conditions can Floyds 99 refuse to offer a successor franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
tion to the Franchisor sufficient for the Franchisor to assess the proposed transferee's business experience, aptitude and financial qualification, and the Franchisor shall have ascertained that the proposed transferee meets such qualifications;
- f. Execution by Franchisee of a general release, in a form satisfactory to the Franchisor, of any and all claims against the Franchisor, its affiliates and their respective officers, directors, employees and agents;
- g. Payment by the Franchisee or the proposed transferee of $7,500;
- h. Neither the proposed transferee nor any of its direct or indirect owners or affiliates operates, has an ownership interest in or performs services for a Competitive Business; and
- i. Agreement by the Franchisee to abide by the post-termination covenant not to compete set forth in Section 22.2 below.
The Franchisor will not unreasonably withhold, delay or condition its consent to any proposed transfer by the Franchisee which requires the Franchisor's consent under this Section 18.2.
18.3 Franchisor's Approval of Transfer. The Franchisor has 90 days from the date of the written notice of the proposed transfer to approve or disapprove in writing, of the Franchisee's proposed transfer. The Franchisee acknowledges that the proposed transferee shall be evaluated for approval by the Franchisor based on the same criteria as is currently being used to assess new franchisees of the Franchisor and that such proposed transferee shall be provided, if appropriate, with such disclosures as may be required by state or federal law. If the Franchisee and the proposed transferee comply with all conditions for assignment set forth herein and the Franchisor has not given the Franchisee notice of its approval or disapproval within the
90-day period, approval is deemed granted. The Franchisor's approval of any transfer shall not constitute approval for any subsequent transfer or a waiver of any of the Franchisor's rights under this Article 18.
- 18.4 Right of First Refusal. If the Franchisee wishes to transfer its rights under this Agreement or any interest in it, or
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
Based on the 2025 Floyds 99 Franchise Disclosure Document, the document does not explicitly state the conditions under which Floyds 99 can refuse to offer a successor franchise. The FDD does outline conditions related to the transfer of a franchise, which include requirements such as a $7,500 payment, restrictions on competitive businesses, and adherence to non-compete agreements. Floyds 99 retains the right to approve or disapprove a proposed sale or transfer of the franchise, evaluating the proposed transferee based on the same criteria used for new franchisees.
Floyds 99 has 90 days from the date of written notice to approve or disapprove a proposed transfer. If the franchisee and transferee meet all conditions and Floyds 99 does not respond within this period, approval is considered granted. Floyds 99 also holds a 90-day right of first refusal to purchase the franchise rights or assets under the same terms as a third-party offer.
To understand the specific conditions under which Floyds 99 might refuse to offer a successor franchise, a prospective franchisee should directly ask the franchisor for clarification. This inquiry should cover potential scenarios and the criteria Floyds 99 uses to evaluate candidates for franchise renewal or succession.