What happens if there is a conflict of law regarding the Floyds 99 Franchise Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
20.7 State and Federal Law. THE PARTIES ACKNOWLEDGE THAT IF THE TERMS OF THIS AGREEMENT REGARDING TERMINATION OR EXPIRATION ARE INCONSISTENT WITH APPLICABLE STATE OR FEDERAL LAW, SUCH LAW SHALL GOVERN THE FRANCHISEE'S RIGHTS REGARDING TERMINATION OR EXPIRATION OF THIS AGREEMENT.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchise agreement acknowledges that if any of its terms regarding termination or expiration are inconsistent with applicable state or federal law, then those state or federal laws will take precedence. This applies specifically to a franchisee's rights concerning the termination or expiration of the agreement.
This clause is included to ensure that the Floyds 99 franchise agreement complies with varying legal requirements across different jurisdictions. Franchise laws can differ significantly from state to state, particularly regarding the conditions under which a franchise can be terminated or renewed. Federal laws may also impact these aspects of the agreement.
For a prospective Floyds 99 franchisee, this means that the protections and obligations outlined in the franchise agreement are subject to the laws of their specific state or relevant federal statutes. It is important for franchisees to understand both the franchise agreement and the laws in their jurisdiction to fully grasp their rights and responsibilities regarding termination and expiration. This clause aims to provide franchisees with the maximum protection afforded by law, even if the franchise agreement's terms are less favorable. Franchisees should seek legal counsel to understand how these laws apply to their specific situation.
This type of clause is relatively standard in franchise agreements to address potential conflicts with local and federal regulations. It reflects an effort by Floyds 99 to balance its standard contractual terms with the legal requirements of the areas in which it operates, providing a degree of legal certainty for both the franchisor and the franchisee.