What is required of a Floyds 99 franchisee to renew their franchise rights for an additional term?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.3 Rights Upon Expiration. At the end of the initial term hereof, the Franchisee shall have the option to renew its franchise rights for an additional term, by acquiring successor franchise rights, if the Franchisor does not exercise its right not to offer a successor franchise in accordance with Section 19.5 below and if the Franchisee:
- a. At least 30 days prior to expiration of the term, executes the form of Franchise Agreement then in use by the Franchisor;
- b. Has substantially complied with all provisions of this Agreement during the current term, including the payment on a timely basis of all Royalties, National Marketing Contributions and other fees due hereunder. "Compliance" shall mean, at a minimum, that the Franchisee has not received any written notification from the Franchisor of breach hereunder more than four times during the term hereof;
- c. Upgrades and/or remodels the FLOYD'S 99 Shop and its operations at the Franchisee's sole expense (the necessity of which shall be in the sole discretion of the Franchisor) to conform with the then current Operations Manual;
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a franchisee has the option to renew their franchise rights for an additional term if Floyds 99 does not choose to not offer a successor franchise. To renew, the franchisee must meet certain requirements.
First, at least 30 days before the end of the initial 10-year term, the franchisee must execute the form of franchise agreement then in use by Floyds 99. Second, the franchisee must have substantially complied with all provisions of the existing agreement during the current term. This includes timely payments of all royalties, national marketing contributions, and other fees. Substantial compliance means the franchisee has not received more than four written notifications from Floyds 99 regarding breaches of the agreement during the term.
Finally, the franchisee must upgrade or remodel the Floyds 99 shop and its operations at their own expense to conform to the then-current operations manual. The necessity of these upgrades or remodels is determined solely by Floyds 99. Meeting these conditions allows a franchisee to acquire successor franchise rights for an additional term.