What federal law might govern aspects of the Floyds 99 Franchise Agreement?

According to the 2025 Floyds 99 Franchise Disclosure Document, the Franchise Agreement acknowledges that federal law may govern the franchisee's rights regarding termination or expiration of the agreement. Specifically, if any terms within the agreement concerning termination or expiration are inconsistent with applicable federal law, then the federal law will take precedence and govern the franchisee's rights.

This acknowledgement is important for prospective Floyds 99 franchisees because it highlights that the franchise agreement is not the only source of legal rights. Federal laws, which are designed to protect franchisees in certain situations, can override specific provisions in the agreement. This could impact the franchisee's ability to renew the franchise, the conditions under which the franchise can be terminated, or other critical aspects of the franchise relationship.

It is typical for franchise agreements to include such a clause to ensure compliance with federal and state laws. Franchise laws exist to protect franchisees from unfair practices by franchisors, particularly concerning termination and renewal. Prospective franchisees should consult with an attorney to understand their rights under both the franchise agreement and any applicable federal laws. This will help them make informed decisions and protect their investment in a Floyds 99 franchise.