Is the availability of funds to the Floyds 99 Franchisee considered a cause beyond the Franchisee's control?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Abandonment. If the Franchisee ceases to operate the FLOYD'S 99 Shop or otherwise abandons the FLOYD'S 99 Shop for a period of three consecutive days, or any shorter period that indicates an intent by the Franchisee to discontinue operation of the FLOYD'S 99 Shop, unless and only to the extent that full operation of the FLOYD'S 99 Shop is suspended or terminated due to fire, flood, earthquake or other similar causes beyond the Franchisee's control and not related to the availability of funds to the Franchisee;
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the availability of funds to the franchisee is specifically excluded as a cause beyond the franchisee's control in the context of shop abandonment.
Specifically, if a Floyds 99 franchisee ceases to operate the shop for three consecutive days (or any shorter period indicating an intent to discontinue operation), the franchisor can terminate the agreement. However, this termination clause is waived if the shop's full operation is suspended or terminated due to causes beyond the franchisee's control, such as fire, flood, or earthquake. The explicit exception to this waiver is when the cause is related to the availability of funds to the franchisee.
This means that if a Floyds 99 franchisee closes their shop due to lack of funds, it will be considered a breach of the franchise agreement, and Floyds 99 can terminate the agreement without allowing the franchisee an opportunity to remedy the situation. This is a critical point for prospective franchisees to consider, highlighting the importance of securing adequate funding and maintaining financial stability throughout the franchise term.