factual

What are the Floyds 99 franchisee's obligations upon termination or expiration of the franchise agreement?

Floyds_99 Franchise · 2025 FDD

Answer from 2025 FDD Document

or purchase of the FLOYD'S 99 Shop or its assets by the Franchisor.

  • e. If the Franchisor does not exercise the Franchisor's right to purchase the Franchisee's FLOYD'S 99 Shop as set forth above, the Franchisee will be free to keep or to sell, after such termination or expiration, to any third party, all of the physical assets of its FLOYD'S 99 Shop; provided, however, that all appearances of the Marks and the Franchisor's color scheme and trade dress are first removed in a manner approved in writing by the Franchisor.
  • 20.4 Obligations of Franchisee Upon Termination or Expiration. The Franchisee is obligated upon termination or expiration of this Agreement to immediately:
    • a. Pay to the Franchisor all Royalties, National Marketing Contributions, other fees, and any and all amounts or accounts payable then owed the Franchisor or its affiliates pursuant to this Agreement, or pursuant to any other agreement, whether written or oral, including subleases and lease assignments, between the parties;
    • b. Cease to identify itself as a FLOYD'S 99 franchisee or publicly identify itself as a former Franchisee or use any of the Franchisor's trade secrets, signs, symbols, devices, trade names, trademarks or other materials;
    • c.

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

What This Means (2025 FDD)

According to the 2025 Floyds 99 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee has specific obligations. The franchisee must immediately pay Floyds 99 all outstanding royalties, national marketing contributions, other fees, and any other amounts owed to Floyds 99 or its affiliates, as per the franchise agreement or any other agreements, whether written or oral, including subleases and lease assignments.

Additionally, if Floyds 99 does not exercise its option to purchase the Floyds 99 shop, the franchisee is allowed to keep or sell the physical assets of the shop to a third party. However, before doing so, the franchisee must remove all appearances of Floyds 99's trademarks, color schemes, and trade dress in a manner approved in writing by Floyds 99.

It's important to note that the terms of the agreement regarding termination or expiration are subject to applicable state or federal laws. If there are any inconsistencies, the state or federal law will govern the franchisee's rights. This ensures that franchisees are protected by any laws that provide additional rights or protections beyond what is outlined in the 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.