Is Floyds 99 liable for the debts or obligations of the Developer?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
10.1 Independent Businesspersons. The parties acknowledge that each of them is an independent businessperson, that their only relationship is by virtue of this Agreement and that no fiduciary relationship is created hereunder. Neither party is liable or responsible for the other's debts or obligations, nor shall either party be obligated for any damages to any person or property directly or indirectly arising out of the operation of the other party's business authorized by or conducted pursuant to this Agreement. Neither Franchisor nor Developer will hold themselves out to be the agent, employer or partner of the other and neither Franchisor nor Developer has the authority to bind or incur liability on behalf of the other.
- 10.2 Payment of Third-Party Obligations. Franchisor shall have no liability for Developer's obligations to pay any third parties, including without limitation, banks, other lenders, government agencies, any product vendors, or any sales, use, service, occupation, excise, gross receipts, income, property or other tax levied upon Developer, Developer's property, the FLOYD'S 99 Shop(s) developed
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 is not liable or responsible for the debts or obligations of the Developer. The agreement specifies that the relationship between Floyds 99 and the Developer is that of independent businesspersons, with no fiduciary relationship created. Neither party is considered an agent, employer, or partner of the other, and neither has the authority to bind or incur liability on behalf of the other.
This arrangement means that the Developer is responsible for managing their own finances and obligations. Floyds 99 has no responsibility for the Developer's debts to third parties, including banks, lenders, government agencies, or vendors. The Developer is also responsible for all taxes levied upon them, their property, or the Floyds 99 shop, except for taxes that Floyds 99 is legally required to collect from the Developer.
This independent relationship is a common structure in franchising, where franchisees operate their businesses independently while adhering to the franchisor's system and standards. Prospective Floyds 99 developers should understand that they are solely responsible for their financial obligations and should seek professional advice to manage their business effectively.