What are the requirements for a Floyds 99 franchisee to renew or extend their franchise term?
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. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the requirements for a franchisee to renew or extend their franchise term include remodeling their location, paying a fee, signing a new franchise agreement, and providing a release. The initial franchise term for a Floyds 99 shop is 10 years, as detailed in Section 19.1 of the Franchise Agreement.
The renewal terms are subject to the conditions outlined in Sections 19.3 and 19.4 of the Franchise Agreement, which state that the renewal term will be based on the then-current Franchise Agreement. This means that the terms and conditions applicable at the time of renewal will govern the extended franchise relationship.
A significant point for prospective franchisees to consider is that Floyds 99 may ask them to sign a contract with materially different terms and conditions than their original contract if they choose to renew. This could impact various aspects of the franchise agreement, such as fees, operational requirements, and other obligations. Therefore, franchisees should carefully review the renewal agreement to understand any changes and their implications.