What constitutes a 'material judgment' against a Floyds 99 franchisee that could lead to termination?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
If any material judgment (or several judgments which in the aggregate are material) is obtained against the Franchisee and remains unsatisfied or of record for 30 days or longer (unless a supersedeas or other appeal bond has been filed); or if execution is levied against the Franchisee's business or any of the property used in the operation of the FLOYD'S 99 Shop and is not discharged within five days; or if the real or personal property of the Franchisee's business shall be sold after levy thereupon by any sheriff, marshal or constable;
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, a franchisee may face termination if a material judgment is obtained against them and remains unsatisfied or of record for 30 days or longer. However, this is not applicable if a supersedeas or other appeal bond has been filed.
Additionally, if execution is levied against the franchisee's business or any property used in the operation of the Floyds 99 shop, and it is not discharged within five days, this can also lead to termination. Similarly, if the real or personal property of the franchisee's business is sold after levy by a sheriff, marshal, or constable, it can result in the termination of the franchise agreement.
These conditions are fairly standard in franchise agreements, as they protect the franchisor's brand and reputation by ensuring franchisees maintain financial stability and meet their legal obligations. Prospective franchisees should be aware of these terms and ensure they have adequate financial resources and legal counsel to address any potential judgments or levies against their business.