What franchise agreement governs the renewal term for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.3 Rights Upon Expiration. At the end of the initial term hereof, the Franchisee shall have the option to renew its franchise rights for an additional term, by acquiring successor franchise rights, if the Franchisor does not exercise its right not to offer a successor franchise in accordance with Section 19.5 below and if the Franchisee:
- a. At least 30 days prior to expiration of the term, executes the form of Franchise Agreement then in use by the Franchisor;
- b. Has substantially complied with all provisions of this Agreement during the current term, including the payment on a timely basis of all Royalties, National Marketing Contributions and other fees due hereunder. "Compliance" shall mean, at a minimum, that the Franchisee has not received any written notification from the Franchisor of breach hereunder more than four times during the term hereof;
- c. Upgrades and/or remodels the FLOYD'S 99 Shop and its operations at the Franchisee's sole expense (the necessity of which shall be in the sole discretion of the Franchisor) to conform with the then current Operations Manual;
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the renewal of a franchise is governed by the franchise agreement in use by the franchisor at the time of renewal. Specifically, to renew the franchise at the end of the initial term, a franchisee must execute the form of Franchise Agreement then in use by Floyds 99.
In practical terms, this means that the terms and conditions of the renewed franchise may differ from the original agreement. Floyds 99 can update its franchise agreement, and franchisees seeking to renew must agree to the new terms. This is a standard practice in franchising, allowing the franchisor to adapt to changing market conditions and legal requirements.
To be eligible for renewal, the franchisee must also have substantially complied with all provisions of the existing agreement, including timely payments of royalties, national marketing contributions, and other fees. Compliance also means not receiving more than four written notifications of breach from Floyds 99 during the current term. Additionally, the franchisee must upgrade or remodel the Floyds 99 shop to conform to the then-current Operations Manual, at the franchisee's sole expense, with the necessity of such upgrades being determined by Floyds 99.