Does the Rider to the Floyds 99 Development Agreement supersede any part of the original agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ur rights upon Termination and Non-Renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Franchise Acknowledgment / Compliance Certification:
No statement, questionnaire, or acknowledgement 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 DEVELOPMENT AGREEMENT FOR THE STATE OF ILLINOIS
| Developer is dated, 20 | This Rider to the Development Agreement by and between Floyd's 99 Franchising, LLC and |
|---|---|
| 1. | Section 13.4 is deleted in its entirety and the following is substituted in its place: |
| 13.4 seq.), or other federal law, Illinois law governs this Agreement. | Governing Law/Consent to Venue and Jurisdiction. Except to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et |
| 2. | Payment of the development fee is deferred until such time as the franchisor completes its |
| the Illinois Attorney General's Office based on our financial statements. | initial obligations and franchisee is open for business. The deferral of the development fee is required by |
| 3. | The Franchisor reserves the right to require the Developer to pay up to $25,000 for an |
| Developer establishes. | opening advertising and marketing campaign for the first Shop and each subsequent Shop that the |
| 4. | The Developer's rights upon termination and non-renewal of this Agreement are set forth |
| in Sections 19 and 20 of the Illinois Franchise Disclosure Act. | |
| 5. | In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, |
| the Illinois Franchise disclosure Act or any other law of Illinois is void. | stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with |
| 6. franchise. | No statement, questionnaire, or acknowledgement 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 |
| concurrently with the execution of the Development Agreement on the day and year first above written. | IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Illinois Rider |
| 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 ILLINOIS
| This Rider to the Franchise Agreement by and between Floyd's 99 Franchising, LLC and Franchisee is dated, 20 |
|---|
| 1. |
| Section 24.4 is deleted in its entirety and the following is substituted in its place: |
| 24.4 |
| Governing Law/Consent to Venue and Jurisdiction. |
| Except to the extent |
| governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051 et |
| seq.), or other federal law, Illinois law governs this Agreement. |
| 2. |
| Payment of the initial franchise fee is deferred until such time as the franchisor completes |
| its initial obligations and franchisee is open for business. The deferral of the initial franchise fee is required |
| by the Illinois Attorney General's Office based on our financial statements. |
| 3. |
| The Franchisor reserves the right to require the Franchisee to pay up to $25,000 for an |
| opening advertising and marketing campaign for the Shop that the Franchisee establishes under this |
| Franchise Agreement. |
| 4. |
| The Franchisee's rights upon termination and non-renewal of this Agreement are set forth |
| in Sections 19 and 20 of the Illinois Franchise Disclosure Act. |
| 5. |
| In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, |
| stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with |
| the Illinois Franchise Disclosure Act or any other law of Illinois is void. |
| 6. |
| No statement, questionnaire, or acknowledgement 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. |
| IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Illinois Rider |
| concurrently with the execution of the Franchise Agreement on the day and year first above written. |
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 indeed supersede parts of the original agreement. For instance, for Illinois, Section 13.4 of the original agreement is entirely deleted and replaced with a new section regarding Governing Law/Consent to Venue and Jurisdiction. Additionally, a clause is added stating that no statement can waive claims under state franchise law, superseding any conflicting terms. For Minnesota, the rider modifies sections 8.2.f, 9.5, 13.4, and 13.5 of the original agreement, adding clauses related to franchisee rights and legal procedures under Minnesota law. For Wisconsin, a paragraph is added to Section 9.4 clarifying that termination or non-renewal conditions may be affected by the Wisconsin Fair Dealership Law.
These modifications in the Rider are important for prospective Floyds 99 developers as they clarify specific legal and financial obligations that may differ from the standard Development Agreement. The Rider ensures compliance with state-specific franchise laws, which can significantly impact the franchisee's rights and responsibilities. For example, the deferral of the development fee in Illinois until the franchisee is open for business provides a financial benefit to the franchisee during the initial stages.
The inclusion of these state-specific clauses in the Rider is a common practice in franchising to address the varying legal landscapes across different states. Franchise agreements often need to be tailored to comply with local regulations, and Riders serve as a mechanism to implement these necessary adjustments. Floyds 99 franchisees should carefully review the Rider applicable to their state to understand how it modifies the original Development Agreement and what specific rights and obligations it entails.
It is crucial for potential Floyds 99 franchisees to seek legal counsel to fully understand the implications of these changes and how they affect their investment and operational control. Understanding the interplay between the original agreement and the Rider is essential for a successful and legally compliant franchise operation.