What constitutes a material misrepresentation or omission by the developer in connection with the purchase of Floyds 99 development rights that could lead to termination?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.1 Termination by Franchisor Effective Upon Notice. Franchisor shall have the right, at its option, to terminate this Agreement and all rights granted Developer hereunder, without affording Developer any opportunity to cure any default (subject to any state laws to the contrary, where state law shall prevail), effective upon written notice to Developer, addressed as provided in Section 13.11, upon the occurrence of any of the following events:
- (a) Developer (or any of Developer's owners) have made any material misrepresentation or omission in connection with Developer's purchase of these development rights;
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the franchisor has the right to terminate the Development Agreement with the developer if the developer (or any of the developer's owners) has made any material misrepresentation or omission in connection with the purchase of these development rights. This termination is effective immediately upon written notice to the developer.
This means that if a prospective Floyds 99 developer provides false or misleading information during the process of acquiring development rights, Floyds 99 can terminate the agreement. The FDD does not define what specifically constitutes a "material" misrepresentation or omission, leaving room for interpretation by Floyds 99.
Prospective developers should ensure that all information provided to Floyds 99 during the application and purchase process is accurate and complete. Due diligence is essential to avoid potential disputes or termination of the agreement based on alleged misrepresentations or omissions.