As of what date is the information regarding bankruptcy laws relevant to the Floyds 99 Guaranty?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Issuance date: June 10, 2025 The franchise sellers for this offering is/are: (1) Paul O'Brien or with Floyd's 99 Franchising, LLC, located at 7900 E. Berry Place, Greenwood Village, CO 80111, and/or (2) Floyd's 99 Franchising authorizes the respective state agencies identified on Exhibit A to receive service of process for it in the particular state.
I received a Disclosure Document with an issue date of June 10, 2025 that included the following Exhibits:
A List of State Agencies/Agents for Service of Process B Development Agreement C Franchise Agreement D Amendment to Franchise Agreement (Renewal) E FLOYD'S 99 Franchised Barbershop Locations F Franchisees Who Have Left the System G Financial Statements H Operations Manual Table of Contents I Nondisclosure and Noncompetition Agreement J State Addenda and Riders to Disclosure Document, Franchise Agreement, Development Agreement and Other Exhibits K General Release L Lease Addendum and Collateral Assignment of Lease M Notice of Restrictive Covenants N Closing Acknowledgement O Receipts Date: (Do not leave blank) Signature of Prospective Franchisee Print Name
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the information regarding the enforceability of termination upon bankruptcy is relevant as of the issuance date of the document, June 10, 2025. Specifically, the addendum for the state of Maryland notes that the franchise agreement provides for termination upon bankruptcy, but this provision may not be enforceable under federal bankruptcy law. A similar statement is made in the addendum for California. This suggests that the standard Floyds 99 franchise agreement includes a clause allowing termination if a franchisee declares bankruptcy. However, due to federal laws, this clause's enforceability can be questionable.
For a prospective franchisee, this means that while the Floyds 99 agreement may state that bankruptcy can lead to termination, federal bankruptcy laws might override this provision. This is a critical consideration for franchisees who may face financial difficulties. It is not uncommon for franchise agreements to include clauses about termination upon bankruptcy, but the enforceability of such clauses often depends on the jurisdiction and the specific circumstances of the bankruptcy case.
Therefore, potential Floyds 99 franchisees should consult with a legal professional to understand their rights and obligations under both the franchise agreement and federal bankruptcy laws. This is especially important if the franchisee anticipates potential financial instability or if they are located in a state with specific franchise laws that may offer additional protections. Understanding the interplay between the franchise agreement and bankruptcy laws can help franchisees make informed decisions and protect their investment.