For Floyds 99 franchises in Illinois, what section of the Development Agreement is deleted and replaced?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
S, CONDITIONS, RESTRICTIONS AND OBLIGATIONS OF BOTH THE FRANCHISOR AND THE FRANCHISEE.
The Franchisor's registered agent in the state authorized to receive service of process is:
Commissioner of Securities Department of Commerce and Consumer Affairs Business Registration Division Securities Compliance Branch 335 Merchant Street, Room 203 Honolulu, Hawaii 96813
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- The following list reflects the status of the franchise registrations of the Franchisor in the states which require registration:
- A. This proposed registration is effective in the following states: None
- B. This proposed registration is or will shortly be on file in the following states: California, Hawaii, Illinois, Indiana, Maryland, Minnesota, New York, Rhode Island, Virginia and Wisconsin.
- C. States which have refused, by order or otherwise, to register these franchises are: None.
- D. States which have revoked or suspended the right to offer the franchises are: None.
- E. States in which the proposed registration of these franchises has been withdrawn are: None.
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ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF ILLINOIS
State Cover Page. The following Risk Factor is added to the State Cover Page:
Financial Condition. The franchisor's financial condition, as reflected in its financial statements (see Item 21), calls into question the franchisor's financial ability to provide services and support to you.
Item 5 Additional Disclosure.
Payment of the development fee and initial franchise fee is deferred until such time as the franchisor completes its initial obligations and franchisee is open for business. The deferral of the development fee and initial franchise fee is required by the Illinois Attorney General's Office based on our financial statements.
Item 7 and Item 11 Additional Disclosure. The following statement is added to Items 7 and 11:
We reserve the right to require You to pay up to $25,000 for an opening advertising and marketing campaign for Your first Shop and each subsequent Shop that You establish.
Item 17 Additional Disclosures. The following statements are added to Item 17:
Illinois law governs the agreements.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. Howe
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
Based on the 2025 Floyds 99 Franchise Disclosure Document, there is an addendum for the state of Illinois that modifies the standard franchise agreement. However, the provided excerpts do not specify any sections of the Development Agreement that are deleted and replaced for Floyds 99 franchises in Illinois. The Illinois addendum focuses on modifications to Items 5, 7, 11, and 17 of the Franchise Disclosure Document itself, and general compliance with Illinois franchise law. These modifications primarily concern deferred payments of fees, advertising requirements, governing law, and franchisee rights. There is no mention of changes to specific sections of the Development Agreement.
A prospective Floyds 99 franchisee in Illinois should be aware of these specific modifications to the FDD, particularly the deferral of fees and the potential requirement for opening advertising expenses. They should also understand that Illinois law governs the agreement and protects certain franchisee rights, such as the right to bring claims under Illinois franchise law and the invalidity of out-of-state venue provisions.
To determine if any sections of the Development Agreement are specifically deleted and replaced for Illinois franchisees, a prospective franchisee should carefully review the full Illinois addendum to the Development Agreement within the FDD. They should also directly ask the franchisor for clarification on any specific modifications to the Development Agreement applicable in Illinois, as this information is not present in the provided excerpts.