Can a Floyds 99 franchisee terminate the Development Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 19.1 | 10 years |
| b. | Renewal or extension of the | Sections 19.3 and | Term in then-current Franchise |
| term | 19.4 | Agreement. | |
| c. | Requirements for franchisee to renew or extend | Section 19.3 | Remodel, pay fee, sign new agreement and release. You may be asked to sign a contract with materially different terms and conditions than your original contract if you choose to renew. |
| d. | Termination by franchisee | Not Applicable | Not Applicable |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a franchisee cannot terminate the Development Agreement. Item 17 outlines the conditions for termination, renewal, transfer, and dispute resolution for both the Development Agreement and the Franchise Agreement.
The table summarizing the Development Agreement terms indicates that termination by the franchisee is "Not Applicable." This means the Development Agreement does not provide a mechanism for the franchisee to unilaterally terminate the agreement. However, the franchisor, Floyds 99, can terminate the Development Agreement if the franchisee defaults on the Development Agreement or any of the Franchise Agreements.
This lack of termination rights is a significant consideration for potential Floyds 99 developers. It means that once signed, the franchisee is committed to fulfilling the development schedule and other obligations outlined in the agreement, or risk termination by the franchisor. Prospective franchisees should carefully evaluate their ability to meet these obligations before entering into a Development Agreement with Floyds 99.