What is the impact of filing a supersedeas bond on an unsatisfied judgment against a Floyds 99 franchisee?
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, the filing of a supersedeas or other appeal bond can prevent the franchisor from terminating the franchise agreement due to an unsatisfied judgment against the franchisee. Specifically, if a material judgment is obtained against the franchisee and remains unsatisfied for 30 days or longer, Floyds 99 has the option to terminate the franchise agreement.
However, this right to terminate is suspended if the franchisee files a supersedeas bond (a type of appeal bond). This bond essentially guarantees that the judgment will be paid if the appeal is unsuccessful. The filing of this bond gives the franchisee more time to resolve the judgment through the appeals process without immediately risking the termination of their franchise agreement.
This clause protects the franchisee from immediate termination in the event of a judgment while they pursue an appeal. It is important to note that the judgment must be material for this clause to be triggered, and the supersedeas bond must be filed within 30 days of the judgment. If the appeal fails and the judgment remains unsatisfied, Floyds 99 would likely then have grounds to terminate the agreement.