What happens if the termination or expiration terms of the Floyds 99 Development Agreement are inconsistent with applicable state or federal law?

According to the 2025 Floyds 99 Franchise Disclosure Document, if any terms within the Development Agreement regarding termination or expiration are inconsistent with state or federal law, then the applicable state or federal law will take precedence and govern the developer's rights. This means that even if the Development Agreement specifies certain conditions or procedures for termination or expiration, those terms will be superseded if they conflict with legal requirements at the state or federal level.

For a prospective Floyds 99 developer, this clause offers a degree of protection. It ensures that the developer's rights related to the termination or expiration of the agreement are aligned with the legal standards of their jurisdiction. This could be particularly relevant in states with franchise-specific laws that provide franchisees or developers with additional rights or protections beyond what is outlined in the standard franchise agreement.

However, it's important for potential developers to understand the specific state and federal laws that may apply to their Development Agreement. Consulting with a legal professional experienced in franchise law is crucial to fully understand these rights and how they might impact the developer's obligations and options in the event of termination or expiration. This clause does not provide specific details of these laws, so due diligence is essential.