If a Floyds 99 developer fails to meet the development schedule, is that a curable default?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term (Development Agreement) | Section 3.1 | Varies based on development schedule. |
| b. | Renewal or extension of the term | Not Applicable | Not Applicable |
| c. | Requirements for franchisee to renew or extend | Not Applicable | Not Applicable |
| d. | Termination by franchisee | Not Applicable | Not Applicable |
| e. | Termination by franchisor without cause | Not Applicable | Not Applicable |
| f. | Termination by franchisor with cause | Section 9.1 | We can terminate if you default on the Development Agreement or any of your Franchise Agreements. |
| g. | "Cause" defined – curable defaults | Section 9.2 | 30 days' notice of breach of Development Agreement or Franchise Agreement. |
| h. | "Cause" defined – non-curable defaults | Section 9.1 | Material misrepresentation, failure to meet development schedule, conviction of a crime, failure to pay amounts due to Franchisor, unapproved transfers, misuse of Marks, death or disability of Developer, unauthorized disclosure, noncompliance with restrictive covenants, terrorist activities, bankruptcy, assignment for benefit of creditors, default under Franchise |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, failure to meet the development schedule is defined as a non-curable default. This means that Floyds 99 can terminate the Development Agreement if the developer fails to adhere to the agreed-upon schedule for opening new locations.
Because it is a non-curable default, the developer does not have an opportunity to correct the failure to meet the development schedule. Floyds 99 can proceed with termination as outlined in Section 9.1 of the Development Agreement. This could result in the loss of development rights and other penalties as described in Section 9.3.
This is a significant risk for prospective Floyds 99 developers. It highlights the importance of carefully assessing one's ability to meet the development schedule before entering into a Development Agreement. Franchisees should have a clear plan and sufficient resources to ensure they can meet the obligations outlined in the agreement.