What are the non-competition covenants during the term of a Floyds 99 franchise?

According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees are subject to non-competition covenants during the term of the franchise agreement. Specifically, Section 11.1 of both the Franchise Agreement and the Development Agreement states that franchisees cannot be involved in any competing business and must not engage in any diversion of business. This means that while operating a Floyds 99 franchise, a franchisee is prohibited from owning, operating, or having any interest in a business that offers similar services or products.

This restriction is fairly standard in the franchise industry, as franchisors like Floyds 99 aim to protect their brand, customer base, and business model. By preventing franchisees from engaging in competing businesses, Floyds 99 ensures that franchisees focus their efforts on growing the Floyds 99 business and upholding the brand's standards. This covenant helps maintain the integrity and consistency of the Floyds 99 brand across all locations.

For a prospective Floyds 99 franchisee, this means they must be fully committed to the Floyds 99 business and cannot operate or invest in any competing ventures during the term of their franchise agreement. Violation of this covenant could lead to termination of the franchise agreement and other legal consequences. Therefore, it is crucial for potential franchisees to carefully review Section 11.1 of the Franchise Agreement and Development Agreement to fully understand the scope and implications of this non-competition covenant.