Does the Floyds 99 indemnity obligation survive the termination or expiration of the Franchise Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Continuing Obligations. All of Franchisor's and Developer's (and Developer's owners) obligations under this Agreement which expressly or by their nature survive the expiration or termination of this Agreement will continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement, until they are satisfied in full or by their nature expire.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the obligations of both Floyds 99 and the developer (and the developer's owners) can survive the expiration or termination of the agreement. These obligations remain in effect until they are fully satisfied or naturally expire. This means that certain responsibilities and duties outlined in the agreement do not automatically end when the agreement term concludes or is terminated.
For a prospective Floyds 99 developer, this implies that even after the agreement ends, they may still be held accountable for specific obligations. These could include financial responsibilities, adherence to confidentiality clauses, or compliance with certain operational standards that were agreed upon during the term of the agreement. The exact nature of these surviving obligations would be detailed within the specific terms of the Franchise Agreement.
It is important for a potential Floyds 99 developer to carefully review the Franchise Agreement to understand which obligations survive termination or expiration. This understanding will help in planning for the end of the franchise relationship and ensuring continued compliance with any post-termination requirements. Consulting with a legal professional to interpret these clauses is advisable to fully grasp the implications and potential liabilities.