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In the Floyds 99 franchise agreement, what happens if the terms regarding termination or expiration are inconsistent with applicable state or federal law?

Floyds_99 Franchise · 2025 FDD

Answer from 2025 FDD Document

20.7 State and Federal Law. THE PARTIES ACKNOWLEDGE THAT IF THE TERMS OF THIS AGREEMENT REGARDING TERMINATION OR EXPIRATION ARE INCONSISTENT WITH APPLICABLE STATE OR FEDERAL LAW, SUCH LAW SHALL GOVERN THE FRANCHISEE'S RIGHTS REGARDING TERMINATION OR EXPIRATION OF THIS AGREEMENT.

Source: Item 22 — CONTRACTS (FDD pages 57–58)

What This Means (2025 FDD)

According to Floyds 99's 2025 Franchise Disclosure Document, the franchise agreement acknowledges that if any of its terms regarding termination or expiration are inconsistent with state or federal law, then the applicable state or federal law will take precedence and govern the franchisee's rights. This means that while the Floyds 99 franchise agreement outlines specific conditions and procedures for termination and expiration, these are subject to the overriding authority of any relevant laws at the state or federal level.

For a prospective Floyds 99 franchisee, this clause offers a degree of protection. It ensures that the franchisee's rights related to the termination or expiration of their franchise agreement are not diminished or superseded by potentially conflicting terms in the agreement itself. In practical terms, if a franchisee believes that Floyds 99 is attempting to terminate their agreement in a manner that violates state or federal law, this provision allows them to invoke those laws to protect their interests.

It is important for a prospective franchisee to understand the specific termination and renewal laws in their state, as these will take precedence over the terms in the franchise agreement. Consulting with a franchise attorney is advisable to fully understand these rights and how they apply to the Floyds 99 franchise agreement. This clause highlights the importance of due diligence and legal counsel when entering into a franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.