What happens if the personal property of the Floyds 99 franchisee's business is sold after levy?
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 the 2025 Floyds 99 Franchise Disclosure Document, if the personal property of a franchisee's business is sold after levy by a sheriff, marshal, or constable, Floyds 99 has the right to terminate the Franchise Agreement. This termination is effective immediately upon written notice to the franchisee.
This clause in the agreement means that Floyds 99 can terminate the franchise agreement if a franchisee's business faces significant legal or financial issues leading to the sale of business property. This protects Floyds 99's brand and reputation by ensuring that franchisees maintain a certain level of financial stability and operational integrity.
For a prospective Floyds 99 franchisee, this highlights the importance of maintaining sound financial management and adhering to legal and operational standards. Failure to do so, resulting in property being sold after levy, can lead to the termination of the franchise agreement and loss of the business. Franchisees should ensure they have adequate financial resources and legal counsel to address any potential judgments or levies against their business.