Does the Floyds 99 rider to the development agreement alter the original agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ction with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Receipts--Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earlier of the first personal meeting, ten (10) business days before the execution of the franchise or other agreement, or the payment of any consideration that relates to the franchise relationship.
RIDER TO THE FLOYD'S 99 FRANCHISING, LLC DEVELOPMENT AGREEMENT FOR THE STATE OF NEW YORK
| Developer is dated, 20 | This Rider to the Development Agreement by and between Floyd's 99 Franchising, LLC and | |
|---|---|---|
| 1. | The following shall be added at the end of Section 8.2.f.: | |
| 687.5 be satisfied. | Provided however, that all rights enjoyed by the Franchisee and any causes of action arising in the Franchisee's favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this proviso that the non-waiver provision of GBL 687.4 and | |
| 2. | Section 8.6 is deleted and the following is inserted in its place: | |
| Franchisor's obligations under this Agreement. | This Agreement is fully assignable by the Franchisor and shall inure to the benefit of any assignee or other legal successor in interest, and the Franchisor shall in such event be fully released from the same, provided no assignment shall be made except to an assignee who, in the Franchisor's good faith judgment, is willing and able to assume the | |
| 3. | The following shall be added at the end of Section 9.1: | The Developer may terminate the Agreement upon any grounds available by law. |
| 4. wrongs committed by the Franchisor. | After the first sentence of Section 10.3, the following sentence shall be added: However, the Developer shall not be required to indemnify the Franchisor for any liabilities which arose as a result of the Franchisor's breach of this Agreement or other civil | |
| 5. | The following shall be added to Section 13.4: | |
| General Business Law. | However, the foregoing choice of law shall not be considered a waiver of any right conferred upon the Developer by the provisions of Article 33 of the New York State | |
| written. | IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this New York Rider concurrently with the execution of the Development Agreement on the day and year first above | |
| FLOYD'S 99 FRANCHISING, LLC | DEVELOPER (Print Name) | |
| By: | By: | |
| Title: | Title: |
RIDER TO THE FLOYD'S 99 FRANCHISING, LLC FRANCHISE AGREEMENT FOR THE STATE OF NEW YORK
This Rider to the Franchise Agreement by and between Floyd's 99 Franchising, LLC and Franchisee is dated, 20
- The following sentence shall be added after the first sentence of Section 8.3:
Any new or different requirement set forth in the Operations Manual shall not unreasonably increase the Franchisee's obligations or place an excessive burden on the Franchisee's operation of its Floyd's 99 Shop.
- The following shall be added at the end of Sections 18.2.f and 19.3.d:
Provided however, that all rights enjoyed by the Franchisee and any causes of action arising in the Franchisee's favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this proviso that the non-waiver provision of GBL 687.4 and 687.5 be satisfied.
- Section 18.6 is deleted and the following is inserted in its place:
This Agreement is fully assignable by the Franchisor and shall inure to the benefit of any assignee or other legal successor in interest, and the Franchisor shall in such event be fully released from the same, provided no assignment shall be made except to an assignee who, in the Franchisor's good faith judgment, is willing and able to assume the Franchisor's obligations under this Agreement.
- The following shall be added at the end of Section 20.1:
The Franchisee may terminate the Agreement upon any grounds available by law.
- After the first sentence of Section 21.3, the following sentence shall be added:
However, the Franchisee shall not be required to indemnify the Franchisor for any liabilities which arose as a result of the Franchisor's breach of this Agreement or other civil wrongs committed by the Franchisor.
- The following shall be added to Section 24.4:
However, the foregoing choice of law shall not be considered a waiver of any right conferred upon the Franchisee by the provisions of Article 33 of the New York State General Business Law.
IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this New York Rider concurrently with the execution of the Franchise Agreement on the day and year first above written.
| FLOYD'S 99 FRANCHISING, LLC | |
|---|---|
| FRANCHISEE (Print Name) | |
| By: | By: |
| Title: | Title: |
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF NORTH DAKOTA
To the extent the North Dakota Franchise Investment Law, N.D. Cent. Code, §§51-19-01 – 51-19- 17 applies, the terms of this Addendum apply.
Item 17, Additional Disclosures. The following statements are added to Item 17:
Any provision requiring franchisees to consent to the jurisdiction of courts outside North Dakota or to consent to the application of laws of a state other than North Dakota may be unenforceable under North Dakota law. Any mediation or arbitration will be held at a site agreeable to all parties. If the laws of a state other than North Dakota govern, to the extent that such law conflicts with North Dakota law, North Dakota law will control.
Any general release the franchisee is required to assent to as a condition of renewal is not intended to nor shall it act as a release, estoppel or waiver of any liability franchisor may have incurred under the North Dakota Franchise Investment Law.
Covenants not to compete during the term of and upon termination or expiration of the franchise agreement are enforceable only under certain conditions according to North Dakota law. If the Franchise Agreement contains a covenant not to compete that is inconsistent with North Dakota law, the covenant may be unenforceable.
The Franchise Agreement includes a waiver of exemplary and punitive damages. This waiver may not be enforceable under North Dakota law.
The Franchise Agreement stipulates that the franchisee shall pay all costs and expenses incurred by franchisor in enforcing the agreement. For North Dakota franchisees, the prevailing party is entitled to recover all costs and expenses, including attorneys' fees.
The Franchise Agreement requires the franchisee to consent to a waiver of trial by jury. This waiver may not be enforceable under North Dakota law.
The Franchise Disclosure Document and Franchise Agreement state that franchisee must consent to the jurisdiction of courts outside that State of North Dakota. That requirement may not be enforceable under North Dakota law.
The Franchise Disclosure Document and Franchise Agreement may require franchisees to consent to termination or liquidated damages. This requirement may not be enforceable under North Dakota law.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
RIDER TO THE FLOYD'S 99 FRANCHISING, LLC FRANCHISE AGREEMENT FOR THE STATE OF NORTH DAKOTA
To the extent the North Dakota Franchise Investment Law, N.D. Cent. Code, §§51-19-01 – 51-19- 17 applies, the terms of this Rider apply.
- Notwithstanding anything to the contrary contained in the Franchise Agreement, to the extent that the Franchise Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:
Any release executed in connection with a renewal shall not apply to any claims that may arise under the North Dakota Franchise Investment Law.
Covenants not to compete during the term of and upon termination or expiration of the franchise agreement are enforceable only under certain conditions according to North Dakota law. If the Franchise Agreement contains a covenant not to compete that is inconsistent with North Dakota law, the covenant may be unenforceable.
The choice of law other than the State of North Dakota may not be enforceable under the North Dakota Franchise Investment Law. If the laws of a state other than North Dakota govern, to the extent that such law conflicts with North Dakota law, North Dakota law will control.
The waiver of punitive or exemplary damages may not be enforceable under the North Dakota Franchise Investment Law.
The waiver of trial by jury may not be enforceable under the North Dakota Franchise Investment Law.
The requirement that a franchisee consent to termination or liquidated damages has been determined by the Commissioner to be unfair, unjust and inequitable within the intent of the North Dakota Franchise Investment Law. This requirement may not be enforceable under North Dakota law.
The Franchise Agreement states that franchisee must consent to the jurisdiction of courts located outside the State of North Dakota. This requirement may not be enforceable under North Dakota law.
Franchise Agreement stipulates that the franchisee shall pay all costs and expenses incurred by Franchisor in enforcing the agreement. For North Dakota franchisees, the prevailing party is entitled to recover all costs and expenses, including attorneys' fees.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Any capitalized terms that are not defined in this Rider shall have the meaning given them in the Franchise Agreement.
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- Except as expressly modified by this Rider, the Franchise Agreement remains unmodified and in full force and effect.
This Rider is being entered into in connection with the Franchise Agreement. In the event of any conflict between this Rider and the Franchise Agreement, the terms and conditions of this Rider shall apply.
IN WITNESS WHEREOF, the undersigned have executed this Rider as of the date of the Franchise Agreement.
| FLOYD'S 99 FRANCHISING, LLC | |
|---|---|
| FRANCHISEE (Print Name) | |
| By: | By: |
| Title: | Title: |
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF RHODE ISLAND
- The following paragraph is added at the end of Item 17:
Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF VIRGINIA
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- Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any ground for default or termination stated in the franchise agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
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- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
ADDENDUM TO THE FLOYD'S 99 FRANCHISING, LLC FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF WASHINGTON
To the extent the Washington Franchise Investment Protection Act, Wash. Rev. Code §§19.100.010 – 19.100.940 applies, the terms of this Addendum apply.
Franchisees who receive financial incentives to refer franchise prospects to Franchisors may be required to register as franchise brokers under the laws of Washington State.
Use of Franchise Brokers. The franchisor may use the services of franchise brokers to assist it in selling franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. Carefully evaluate any information provided by a franchise broker about a franchise. Do your own investigation by contacting the franchisor's current and former franchisees to ask them about their experience with the franchisor.
Item 17 d. and u.:
Items 17 d. and u. in "The Franchise Relationship" table and "The Developer Relationship" table are replaced with the following:
| Provision | Section in Franchise Agreement | Summary | ||
|---|---|---|---|---|
| d. | Termination by franchisee | Not Applicable | Not Applicable (subject to state law) | |
| u. | Dispute resolution by arbitration or mediation | Not Applicable | Not Applicable (subject to state law) | |
| d. | Termination by franchisee | Not Applicable | Not Applicable (subject to state law) | |
| ----------- | --------------------------------------------------- | ---------------------------------------- | --------------------------------------- | -- |
| u. | Dispute resolution by arbitration or mediation | Not Applicable | Not Applicable (subject to state law) |
Item 17, Additional Disclosure:
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the rider to the development agreement does alter the original agreement. These alterations are specific to certain states like New York, Wisconsin, Minnesota, and Illinois, and are documented in the Item 23 receipts.
For instance, the New York rider modifies sections of the development agreement related to franchisee rights under New York's General Business Law, assignment of the agreement, termination rights, indemnification, and choice of law. The Wisconsin rider adds a paragraph regarding termination and non-renewal conditions as affected by the Wisconsin Fair Dealership Law. The Minnesota rider includes alterations such as clarifying the application of releases, specifying termination and non-renewal rights, addressing litigation conduct, and modifying injunctive relief terms.
The Illinois rider involves deleting and substituting the section on governing law, deferring payment of the development fee until obligations are met and the franchisee is open for business, reserving the right for Floyds 99 to require up to $25,000 for advertising and marketing, and setting forth the developer's rights upon termination and non-renewal as per the Illinois Franchise Disclosure Act. These riders ensure that the development agreement complies with specific state laws, providing additional protections or clarifications for the developer in those states.