Does the Floyds 99 General Release cover claims arising from the franchise relationship itself?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Rider to the Franchise Agreement by and between Floyd's 99 Franchising, LLC and Franchisee is dated, 20 |
|---|
| 1. |
| Section 24.4 is deleted in its entirety and the following is substituted in its place: |
| 24.4 |
| Governing Law/Consent to Venue and Jurisdiction. |
| Except to the extent |
| governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et |
| seq.), or other federal law, Illinois law governs this Agreement. |
| 2. |
| Payment of the 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 initial franchise fee is required |
| by the Illinois Attorney General's Office based on our financial statements. |
| 3. |
| The Franchisor reserves the right to require the Franchisee to pay up to $25,000 for an |
| opening advertising and marketing campaign for the Shop that the Franchisee establishes under this |
| Franchise Agreement. |
| 4. |
| The Franchisee's rights upon termination and non-renewal of this Agreement are set forth |
| in Sections 19 and 20 of the Illinois Franchise Disclosure Act. |
| 5. |
| In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, |
| stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with |
| the Illinois Franchise Disclosure Act or any other law of Illinois is void. |
| 6. |
| No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in |
| connection with the commencement of the franchise relationship shall have the effect of (i) waiving any |
| claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming |
| reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the |
| franchisor. This provision supersedes any other term of any document executed in connection with the |
| franchise. |
| IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Illinois Rider |
| concurrently with the execution of the Franchise Agreement on the day and year first above written. |
| FLOYD'S 99 FRANCHISING, LLC |
| FRANCHISEE (Print Name) |
| By: |
| By: |
Title:
Title:
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF INDIANA
Indiana law prohibits us from establishing a company-owned Shop within a reasonable area of your Franchised Location which would compete unfairly with you.
In Items 17.c. and 17.m., any releases you sign will not apply to any claims that may arise under the Indiana Franchise Disclosure Law and the Indiana Deceptive Practices Act.
Item 17.r. may not be enforceable under the Indiana Deceptive Practices Act.
Item 17.w. Indiana franchise laws apply even though Colorado law applies generally.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the General Release's coverage of claims arising from the franchise relationship varies by state. In Indiana, Minnesota, and Maryland, any releases signed will not apply to claims arising under their respective franchise laws. Specifically, in Indiana, the release will not apply to claims under the Indiana Franchise Disclosure Law and the Indiana Deceptive Practices Act. Similarly, in Minnesota, the release does not cover claims under the Minnesota Franchise Act. In Maryland, the general release required for renewal, sale, or transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
In Illinois, any franchisee acknowledgment or compliance certification cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Floyds 99 or its representatives. This provision overrides any conflicting terms in documents related to the franchise. California law voids waivers of rights under the Franchise Investment Law and the Franchise Relations Act.
For prospective Floyds 99 franchisees, this means that the enforceability and scope of the General Release are subject to state-specific regulations. Franchisees should be aware of the protections afforded to them by state laws, particularly in Indiana, Minnesota, Maryland, Illinois, and California, where waivers and releases may not fully apply to claims related to the franchise relationship. It is important to consult with a legal professional to understand the implications of the General Release in their specific state and to ensure their rights are protected under applicable franchise laws.