What happens if the real property of the Floyds 99 franchisee's business is sold after levy?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. Unsatisfied Judgments; Levy; Foreclosure.
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 real or personal property of a franchisee's business is sold after a levy by a sheriff, marshal, or constable, Floyds 99 has the option to terminate the Franchise Agreement. This termination is effective immediately upon written notice to the franchisee.
This clause means that a Floyds 99 franchisee's failure to manage their business finances responsibly, leading to property seizure and sale, can result in the immediate loss of their franchise. The franchisee would not have an opportunity to correct the financial issues that led to the levy and sale.
This is a significant risk for prospective franchisees. It underscores the importance of maintaining sound financial management and adhering to all legal and financial obligations to avoid potential property levies and subsequent franchise termination by Floyds 99.