What is the impact of a fire on the operation of a Floyds 99 shop regarding termination?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.1 Termination by Franchisor Effective Upon Notice. The Franchisor shall have the right, at its option, to terminate this Agreement and all rights granted the Franchisee hereunder, without affording the Franchisee any opportunity to cure any default (subject to any state laws to the contrary, where state law shall prevail), effective upon written notice to the Franchisee, addressed as provided in Section 24.12 upon the occurrence of any of the following events:
- a. Abandonment. If the Franchisee ceases to operate the FLOYD'S 99 Shop or otherwise abandons the FLOYD'S 99 Shop for a period of three consecutive days, or any shorter period that indicates an intent by the Franchisee to discontinue operation of the FLOYD'S 99 Shop, unless and only to the extent that full operation of the FLOYD'S 99 Shop is suspended or terminated due to fire, flood, earthquake or other similar causes beyond the Franchisee's control and not related to the availability of funds to the Franchisee;
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the impact of a fire, flood, earthquake, or other similar causes beyond the franchisee's control on the operation of a Floyds 99 shop is specifically addressed in the context of potential termination of the franchise agreement. If a Floyds 99 shop ceases to operate for three consecutive days, or any shorter period indicating an intent to discontinue operation, the franchisor typically has the right to terminate the agreement.
However, there is an exception: this termination clause does not apply if the shop's full operation is suspended or terminated due to fire, flood, earthquake, or other similar causes beyond the franchisee's control. This protection extends only if the cause is not related to the availability of funds to the franchisee.
In essence, if a Floyds 99 shop is forced to close temporarily due to a fire or similar disaster, and this is not due to a lack of funds, the franchisee will not automatically lose their franchise. This clause provides a degree of security for franchisees facing unforeseen disasters, ensuring they are not penalized with termination for circumstances outside their control.