How much did Floyds 99 Franchising, LLC pay as part of the settlement?

According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 Franchising, LLC paid $2,500 as part of a settlement on September 6, 2024. This payment was part of a larger settlement with other defendants in order to avoid additional attorney's fees. All parties involved then entered into a Settlement and Release Agreement.

The lawsuit, initially filed on November 6, 2020, in the Superior Court of the State of California for the County of San Diego, involved Matthew Chavez and Nicole Deis against Roise Barbers, Inc., Jonathan M. Roise, Floyd's 99 Holdings, LLC, and Floyd's 99 Franchising, LLC. The plaintiffs, former employees of Roise Barbers, Inc., sought damages for alleged employment and labor violations under California law, claiming Floyd's 99 Franchising, LLC was liable as a joint employer or co-employer with Roise Barbers, Inc. Floyd's 99 Holdings, LLC was dismissed from the litigation without prejudice on June 14, 2023.

For a prospective franchisee, this indicates that Floyds 99 Franchising, LLC has been involved in litigation related to franchisee employee disputes, which is not uncommon in the franchise industry. While the amount paid by Floyds 99 Franchising, LLC was relatively small, it is important to note the potential for such legal issues to arise. The fact that the case was dismissed without prejudice on December 12, 2024, suggests the matter was resolved to the satisfaction of all parties involved. Franchisees should be aware of their responsibilities as employers and ensure compliance with all applicable labor laws to minimize the risk of similar claims.