What happens if execution is levied against the Floyds 99 Franchisee's business?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
If any material judgment (or several judgments which in the aggregate are material) is obtained against the Franchisee and remains unsatisfied or of record for 30 days or longer (unless a supersedeas or other appeal bond has been filed); or if execution is levied against the Franchisee's business or any of the property used in the operation of the FLOYD'S 99 Shop and is not discharged within five days; or if the real or personal property of the Franchisee's business shall be sold after levy thereupon by any sheriff, marshal or constable;
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, if execution is levied against the franchisee's business or any property used in the operation of the Floyds 99 shop, the franchisee has a short window to resolve the issue. Specifically, the franchisee must discharge the levy within five days.
Failure to discharge the levy within the five-day period grants Floyds 99 the right to terminate the franchise agreement. This means the franchisee could lose the right to operate the Floyds 99 shop and use the brand's trademarks and systems. This clause underscores the importance of maintaining sound financial management and addressing any legal judgments promptly to avoid jeopardizing the franchise.
This type of clause is relatively standard in franchise agreements, as franchisors need to protect their brand and reputation. Allowing a franchisee to continue operating under financial distress or with unresolved legal issues could negatively impact the entire franchise system. Franchisees should be aware of these stipulations and have contingency plans in place to address potential financial or legal challenges.