On what date did Floyds 99 Franchising, LLC make the settlement payment?

According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 Franchising, LLC made a settlement payment on September 6, 2024. The payment of $2,500 was part of a larger settlement with defendants in a case involving alleged employment and labor violations by a franchisee, Roise Barbers, Inc. Floyds 99 Franchising, LLC was added as a defendant to the lawsuit on March 27, 2023, with the plaintiffs claiming that Floyds 99 Franchising, LLC was liable as a joint employer or co-employer with Roise Barbers, Inc. Floyds 99 Holdings, LLC was dismissed from the litigation on June 14, 2023.

The settlement was reached to avoid additional attorney's fees, and all parties entered into a Settlement and Release Agreement. Subsequently, on December 12, 2024, the court dismissed the lawsuit without prejudice. This means the case was dismissed but could potentially be brought again in the future.

For a prospective franchisee, this litigation highlights the importance of understanding the potential liabilities and legal risks associated with operating a Floyds 99 franchise. It also shows that Floyds 99 Franchising, LLC is willing to settle legal disputes to avoid further costs, even when they believe they are not directly responsible. This could be viewed as a positive sign, indicating a proactive approach to managing legal risks. However, it also underscores the need for franchisees to comply with all employment and labor laws to avoid similar legal issues.