What is the exception to the abandonment clause for Floyds 99, allowing suspension of operations without triggering 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, the abandonment clause stipulates that if a franchisee ceases to operate their shop for three consecutive days, or any shorter period indicating an intent to discontinue operation, Floyds 99 has the right to terminate the agreement. However, there is an exception to this rule.
The exception states that 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, earthquake, or other similar causes, and these events are not related to the availability of funds to the franchisee, then the abandonment clause will not apply. This means that if a natural disaster or similar event forces the temporary closure of the shop, the franchisee will not be in breach of contract and risk termination.
This provision protects the franchisee from termination in situations where they are forced to temporarily close their Floyds 99 shop due to circumstances outside of their control. It is important to note that the exception specifically excludes situations related to the availability of funds, meaning financial difficulties leading to closure would still be considered a breach of the abandonment clause. Franchisees should ensure they have adequate insurance coverage to protect against such events and understand their obligations in the event of a temporary closure.