For monetary defaults, how many days does a Floyds 99 franchisee have to cure the default?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 19.1 | 10 years |
| b. | Renewal or extension of the | Sections 19.3 and | Term in then-current Franchise |
| term | 19.4 | Agreement. | |
| c. | Requirements for franchisee to renew or extend | Section 19.3 | Remodel, pay fee, sign new agreement and release. You may be asked to sign a contract with materially different terms and conditions than your original contract if you choose to renew. |
| d. | Termination by franchisee | Not Applicable | Not Applicable |
| e. | Termination by franchisor without cause | Not Applicable | Not Applicable |
| f. | Termination by franchisor with | Sections 20.1 and | We can terminate only if you commit |
| cause | 20.2 | any one of several listed violations. | |
| g. | “Cause” defined – curable | Sections 20.1 and | 30 days for operational defaults, 10 |
| defaults | 20.2 | days for monetary defaults. |
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, a franchisee has a specific timeframe to correct a monetary default. Monetary defaults, which typically involve failure to make required payments to the franchisor, must be cured within 10 days. This is a shorter cure period compared to operational defaults, which have a 30-day cure period.
The distinction between cure periods for monetary and operational defaults is common in franchising. Franchisors often prioritize monetary obligations due to their direct impact on revenue and financial stability. The shorter cure period for monetary defaults underscores the importance of franchisees maintaining timely payments to Floyds 99.
Prospective Floyds 99 franchisees should be aware of these termination conditions and ensure they have sufficient financial resources and management practices in place to meet their financial obligations promptly. Understanding the implications of these default and termination clauses is crucial for the long-term success and stability of the franchise.