What is the purpose of adding the statement to Section 9.5 in the Floyds 99 agreement?

Based on the 2025 Floyds 99 Franchise Disclosure Document, paragraph 5 of the New York Rider modifies the standard franchise agreement to protect franchisees. Specifically, it adds a sentence after the first sentence of Section 21.3 clarifying that franchisees are not required to indemnify Floyds 99 for liabilities resulting from the franchisor's breach of the agreement or other civil wrongs.

This modification is significant because it shifts some of the risk away from the franchisee. Typically, franchise agreements may require franchisees to indemnify the franchisor against various claims and liabilities. However, this addition ensures that a Floyds 99 franchisee in New York will not be held responsible for the franchisor's own misconduct or contractual breaches. This provides a degree of financial protection for the franchisee.

For a prospective Floyds 99 franchisee in New York, this clause offers a more equitable balance of responsibilities. It means that if Floyds 99 Franchising, LLC, acts in a way that leads to legal liabilities, the franchisee will not be forced to cover those costs. This could be a crucial factor in assessing the overall risk and potential profitability of a Floyds 99 franchise in New York, as it limits the franchisee's exposure to liabilities arising from the franchisor's actions.