What is the franchisee's responsibility to ensure proper management of the Floyds 99 Shop?

According to Floyds 99's 2025 Franchise Disclosure Document, franchisees must ensure proper management of their shop. Specifically, one of the principal owners of the franchisee entity, or the designated Principal Manager who has completed Floyds 99's initial training program, must be responsible for the shop's management at all times. If this is the franchisee's first agreement with Floyds 99, the franchisee's principal owner must be actively involved in the day-to-day management of the shop.

Floyds 99 also has rights regarding the management of a shop. If Floyds 99 determines that a shop is not being managed properly or is not being operated by someone who has completed the initial training program, or if a default occurs, Floyds 99 can appoint an interim Principal Manager to operate and manage the shop. This is to prevent an interruption of the shop's operation, which could harm the Floyds 99 system.

If Floyds 99 exercises these management rights, they will keep all monies generated by the shop in a separate account, less the expenses of the shop, including reasonable compensation and expenses for Floyds 99's representatives. Floyds 99 also has the right to charge a reasonable management fee, in addition to royalties and other amounts payable under the agreement, during the period that their appointed Principal Manager manages the shop. The franchisee agrees to hold harmless Floyds 99 and its representatives for all actions occurring during such temporary operation.