What is the effect of the effective date on the Floyds 99 Franchise Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above set forth.
19. TERM AND EXPIRATION
- 19.1 Term. The term of this Agreement is for a period of 10 years from the date of this Agreement, unless sooner terminated as provided herein.
5. DEVELOPMENT OF FRANCHISED LOCATION
5.1 Approval of Franchised Location. Within two hundred seventy (270) days after the date of execution of this Agreement, the Franchisee shall locate a Franchised Location which is suitable for the operation of the FLOYD'S 99 Shop, have it approved by the Franchisor and sign the lease.
- a.
The Franchisor's option hereunder shall be exercisable by providing the Franchisee with written notice of its intention to exercise the option given to the Franchisee no later than the effective date of termination, in the case of termination, or at least 90 days prior to the expiration of the term of the franchise, in the case of non renewal;
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the date of the Franchise Agreement sets the starting point for several key obligations and timelines for both the franchisee and franchisor. The agreement term lasts for 10 years from this date, unless terminated earlier.
Within 270 days of the agreement date, the franchisee must find a suitable location for their Floyds 99 shop, secure franchisor approval, and sign the lease. Failure to meet this deadline can be extended if site availability issues arise beyond the franchisee's control, provided they request an extension in writing before the initial period ends. This date is important because it sets the clock ticking for the franchisee to secure a location and begin operations.
Furthermore, the effective date of termination impacts Floyds 99's option to purchase the shop. Floyds 99 must notify the franchisee in writing of its intent to exercise this option no later than the effective date of termination. For non-renewal, this notice must be given at least 90 days before the franchise term expires. Therefore, the agreement date and any subsequent termination or expiration dates are critical for determining the rights and obligations of both parties under the Franchise Agreement.