How is a Floyds 99 Development Area typically defined?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the terms of the Development Agreement, we grant to you the right to establish, according to a schedule, a minimum number of FLOYD'S 99 Shops within a larger geographical territory ("Development Area"). The Development Area is not an exclusive territory and is subject to our reservation of rights described below. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. A Development Area is usually defined by political boundaries such as street boundaries, a city, county or state limits or by other reasonable boundaries. The number of FLOYD'S 99 Shops to be developed may be adjusted depending on demographics and other characteristics of a Development Area, including population density, income and other characteristics of the surrounding area, natural boundaries, extent of competition and whether the proposed Development Area is urban, suburban or rural in nature. Except for your right of first refusal to develop and operate locations in a Captive Audience Facility, as described below, you have no other option, right of first refusal or similar contractual right to acquire additional FLOYD'S 99 franchises within your Development Area or in contiguous areas.
Except for our reservation of rights described below, we may not establish or franchise any other person or entity to establish FLOYD'S 99 Shops using the Marks and Licensed Methods within your Protected Territory or, if applicable, your Development Area for so long as the Franchise Agreement or, if applicable, Development Agreement, is in effect. The continuation of your right to your Development Area during the term of the Development Agreement is dependent on meeting the development schedule set forth in the Development Agreement. If you do not meet your development schedule, we may: (a) terminate your Development Agreement, (b) operate or grant franchises to others to operate FLOYD'S 99 Shops within the Development Area, or (c) reduce the Development Area and the development schedule to a size and magnitude that we in our discretion estimate you are capable of operating.
Source: Item 12 — TERRITORY (FDD pages 38–41)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a Development Area is a larger geographical territory in which a developer agrees to open a minimum number of Floyds 99 shops according to a set schedule. These areas are typically defined by political boundaries. Examples of political boundaries include street boundaries, city limits, county lines, or state lines. Other reasonable boundaries may also be used to define the area. Floyds 99 emphasizes that the Development Area is not an exclusive territory.
The number of Floyds 99 shops required within a Development Area can be adjusted based on the area's demographics and characteristics. Factors influencing this adjustment include population density, income levels, the nature of the area (urban, suburban, or rural), natural boundaries, and the extent of competition. This flexibility allows Floyds 99 to tailor development plans to suit the specific market conditions of each area.
It's important to note that, aside from a right of first refusal to develop and operate locations in Captive Audience Facilities, developers do not have any other option, right of first refusal, or similar contractual right to acquire additional Floyds 99 franchises within their Development Area or in contiguous areas. The continuation of rights to the Development Area is dependent on meeting the development schedule outlined in the Development Agreement. Failure to meet this schedule could result in termination of the agreement, operation or franchising of Floyds 99 shops to others within the area, or a reduction in the size and development schedule of the Development Area.