What determines the length of the franchise term for a Floyds 99 Development Agreement?

According to Floyds 99's 2025 Franchise Disclosure Document, the length of the franchise term for a Development Agreement varies based on the development schedule. This means the agreement's duration is not fixed but depends on the specific timeline agreed upon for opening new Floyds 99 locations within a defined territory.

For a prospective Floyds 99 developer, this implies that the more aggressive the development schedule (i.e., the faster the franchisee commits to opening new locations), the longer the term of the Development Agreement might be. Conversely, a slower development schedule could result in a shorter agreement term. This is a crucial point to consider during negotiations, as it directly impacts the franchisee's rights and obligations over time.

Unlike a standard franchise agreement, where the term is often a fixed number of years, the variable term in the Floyds 99 Development Agreement introduces an element of performance-based duration. This structure incentivizes developers to adhere to the agreed-upon schedule but also carries the risk of a shorter term if development milestones are not met. Therefore, potential developers should carefully evaluate their capacity to meet the proposed development schedule before signing the agreement.