What happens if a Floyds 99 franchisee's hold-over period exceeds 90 days?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.2 Continuation. If for any reason, the Franchisee continues to operate the Barbershop beyond the term of this Agreement or any subsequent renewal period, it shall be deemed to be on a month-to-month basis under the terms of this Agreement and subject to termination upon 30 days' notice or as required by law. If said hold-over period exceeds 90 days, this Agreement is subject to immediate termination unless applicable law requires a longer period. Upon termination after any hold-over period, the Franchisee and those in active concert with the Franchisee, including family members, officers, directors, partners and managing agents, are subject to the terms of Sections 20.3, 20.4, 22.2 and 22.3 of this Agreement and all other applicable post-termination obligations contained in this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, if a franchisee continues to operate the barbershop beyond the 10-year term of the agreement or any subsequent renewal period, it is considered a month-to-month arrangement under the original agreement's terms. This arrangement is subject to termination with a 30-day notice, or as required by law.
However, if this hold-over period extends beyond 90 days, the Franchise Agreement becomes subject to immediate termination. This is unless applicable law mandates a longer period.
Upon termination after this hold-over period, the franchisee and those associated with them, including family members, officers, directors, partners, and managing agents, are subject to specific post-termination obligations. These obligations are detailed in Sections 20.3, 20.4, 22.2, and 22.3 of the Franchise Agreement, as well as all other applicable post-termination obligations outlined in the agreement.