For operational 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 30 days to cure operational defaults. This is according to the table outlining termination conditions within the Franchise Agreement. The franchisor can terminate the agreement if the franchisee commits certain violations, and the time allowed to correct these issues depends on the nature of the default.
Specifically, if the default is operational, such as failure to maintain standards or follow procedures, the franchisee has 30 days to resolve the issue after receiving notice from Floyds 99. However, if the default is monetary, such as failure to pay fees, the franchisee only has 10 days to cure the default.
It is important for a prospective Floyds 99 franchisee to understand these termination conditions and cure periods. Failing to address defaults within the specified timeframes can lead to termination of the franchise agreement. Franchisees should ensure they have systems in place to monitor and address any potential defaults promptly to maintain compliance and protect their investment.