What is the definition of 'abandonment' in the context of a Floyds 99 franchise, that could lead to termination?
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 the 2025 Floyds 99 Franchise Disclosure Document, abandonment, which can lead to termination of the franchise agreement, is defined as ceasing to operate the Floyds 99 shop or otherwise abandoning it for three consecutive days. This also applies to any shorter period that indicates an intent to discontinue operation.
However, there is an exception to this rule. If the full operation of the Floyds 99 shop is suspended or terminated due to events beyond the franchisee's control, such as fire, flood, or earthquake, and these events are not related to the availability of funds to the franchisee, it would not be considered abandonment.
This clause protects Floyds 99 from franchisees who might neglect their business, while also providing a reasonable exception for unforeseen circumstances that are genuinely beyond the franchisee's control. Prospective franchisees should be aware of this clause and ensure they have adequate business interruption insurance and contingency plans to address potential disruptions.