What happens if a Floyds 99 developer engages in terrorist activities?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Development Agreement or any of your Franchise Agreements. | | g. | "Cause" defined – curable defaults | Section 9.2 | 30 days' notice of breach of Development Agreement or Franchise Agreement. | | h. | "Cause" defined – non-curable defaults | Section 9.1 | Material misrepresentation, failure to meet development schedule, conviction of a crime, failure to pay amounts due to Franchisor, unapproved transfers, misuse of Marks, death or disability of Developer, unauthorized disclosure, noncompliance with restrictive covenants, terrorist activities, bankruptcy, assignment for benefit of creditors, default under Franchise | | | Provision | Section in Development Agreement | Summary | |----|------------------------------------------------------------------------------|----------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | Agreement or other agreements, notice of termination of Franchise Agreement delivered to Developer by Franchisor or Developer terminates a Franchise Agreement without cause. | | i.
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, engaging in terrorist activities constitutes a non-curable default under the Development Agreement. This means Floyds 99 has grounds to terminate the agreement immediately without allowing the developer an opportunity to correct the behavior.
Specifically, the FDD outlines various scenarios that qualify as non-curable defaults, including material misrepresentation, failure to meet the development schedule, conviction of a crime, failure to pay amounts due to the Franchisor, unapproved transfers, misuse of Marks, death or disability of Developer, unauthorized disclosure, noncompliance with restrictive covenants, terrorist activities, bankruptcy, assignment for benefit of creditors, default under Franchise Agreement or other agreements, notice of termination of Franchise Agreement delivered to Developer by Franchisor or Developer terminates a Franchise Agreement without cause.
If Floyds 99 terminates the Development Agreement due to terrorist activities, the developer will lose their development rights and must cease using Floyds 99's Marks and confidential information, except in connection with Barbershops currently operating. Additionally, the developer will be subject to a covenant not to compete, preventing them from engaging in a competing business for 2 years within 25 miles of their Floyds 99 shops or any other Floyds 99 shop.