What is the 'repeated noncompliance' clause for Floyds 99, and how does it lead to termination?

According to Floyds 99's 2025 Franchise Disclosure Document, the 'repeated noncompliance' clause outlines specific conditions under which Floyds 99 can terminate a franchise agreement due to a franchisee's repeated failure to adhere to the agreement terms. This clause is triggered if a franchisee receives two prior notices of default from Floyds 99 and then defaults again within a 12-month period. The termination can occur regardless of whether the franchisee addressed or cured the previous defaults.

This clause means that Floyds 99 franchisees must maintain consistent compliance with all aspects of the franchise agreement. Even if a franchisee corrects a problem after receiving a default notice, a subsequent default within the 12-month window can lead to termination. This policy underscores the importance of franchisees maintaining operational standards and adhering to the franchise agreement.

For a prospective Floyds 99 franchisee, this highlights the need for careful attention to detail and consistent adherence to the franchisor's standards and requirements. It also emphasizes the importance of addressing any issues promptly and effectively to avoid repeated defaults that could lead to the termination of the franchise agreement. Franchisees should ensure they fully understand the terms of the agreement and have systems in place to maintain compliance to mitigate the risk of repeated defaults.