What is the process for the Floyds 99 Franchisor to provide written notice of termination to the Franchisee?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
e provisions of Sections 18.4 and 20.3, the form of which is attached as Exhibit VI to this Agreement. Such consent will subject any interest they may have in this Agreement, in the Shop, or in the Franchisee covered by the option or right of first refusal provided for in said Sections, as applicable (whether a separate property interest, joint ownership property interest, community property interest, or otherwise), to the provisions of those Sections.
20. DEFAULT AND TERMINATION
20.1 Termination by Franchisor Effective Upon Notice. The Franchisor shall have the right, at its option, to terminate this Agreement and all rights granted the Franchisee hereunder, without affording the Franchisee any opportunity to cure any default (subject to any state laws to the contrary, where state law shall prevail), effective upon written notice to the Franchisee, addressed as provided in Section 24.12 upon the occurrence of any of the following events:
- a. Abandonment. If the Franchisee ceases to operate the FLOYD'S 99 Shop or otherwise abandons the FLOYD'S 99 Shop for a period of three consecutive days, or any shorter period that indicates an intent by the Franchisee to discontinue operation of the FLOYD'S 99 Shop, unless and only to the extent that full operation of the FLOYD'S 99 Shop is suspended or terminated due to fire, flood, earthquake or other similar causes beyond the Franchisee's control and not related to the availability of funds to the Franchisee;
- b. Insolvency; Assignments. If the Franchisee becomes insolvent or is adjudicated a bankrupt; or if any action is taken by the Franchisee, or by others against the Franchisee under any insolvency, bankruptcy or reorganization act, (this provision may not be enforceable under federal bankruptcy law, 11 U.S.C. §§ 101 et seq.); or if the Franchisee makes an assignment for the benefit of creditors or a receiver is appointed by the Franchisee;
c. Unsatisfied Judgments; Levy; Foreclosure. If any material judgment (or several judgments which in the aggregate are material) is obtained against the Franchisee and remains unsatisfied or of record for 30 days or longer (unless a supersedeas or other appeal bond has been filed); or if execution is levied against the Franchisee's business or any of the property used in the operation of the FLOYD'S 99 Shop and is not discharged within five days; or if the real or personal property of the Franchisee's business shall be sold after levy thereupon by any sheriff, marshal or constable;
d. Criminal Conviction. If the Franchisee is convicted of a felony, a crime involving moral turpitude, or any crime or offense that is reasonably likely, in the sole opinion of the Franchisor, to materially and unfavorably affect the Licensed Methods, Marks, goodwill or reputation thereof;
e.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 can terminate the franchise agreement with a franchisee under two different scenarios, each with its own notification process. In the first scenario, if a franchisee breaches any provision of the agreement, Floyds 99 can terminate the agreement with 30 days' written notice, provided the franchisee fails to correct the breach within that 30-day period. If the breach remains uncured after 30 days, the agreement terminates without further notice.
In the second scenario, Floyds 99 can terminate the agreement immediately upon written notice if certain events occur, without offering an opportunity to cure the default. These events include abandonment of the Floyds 99 shop for three consecutive days (or a shorter period indicating intent to discontinue operation), franchisee insolvency or bankruptcy, material unsatisfied judgments against the franchisee for 30 days or longer, or a criminal conviction.
It's important to note that these termination rights are subject to any state laws that may differ, in which case state law will take precedence. A prospective Floyds 99 franchisee should be aware of the specific conditions under which their franchise agreement can be terminated and understand their rights and obligations in such situations.