Are the rights and remedies of Floyds 99 and the franchisee cumulative?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to pay all of Franchisor's reasonable attorneys' fees and costs incurred as a consequence of Franchisor's exercise of Franchisor's Management Rights.
Nothing contained herein shall prevent Franchisor
from exercising any other right which Franchisor may have under this Agreement, including, without limitation, termination. Operation of Franchisee's FLOYD'S 99 Shop during the exercise of Franchisor's Management Rights will be on Franchisee's behalf, provided that Franchisor only has a duty to utilize its best efforts and will not be liable to Franchisee or it's owners for any debts, losses or obligations incurred by Franchisee's FLOYD'S 99 Shop or to any of Franchisee's creditors for any products, materials, supplies or services Franchisee's FLOYD'S 99 Shop purchases during the period during which Franchisor's Management Rights are being exercised.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 retains the right to exercise any other right it may have under the agreement, including termination, even while exercising its management rights. This means that Floyds 99's rights and remedies are cumulative, allowing them to pursue multiple avenues of recourse simultaneously.
Specifically, Floyds 99 has the right to appoint an interim Principal Manager to operate the franchisee's shop if it is not being managed properly, if the operator hasn't completed the mandatory training, or if a default occurs. This is intended to prevent harm to the Floyds 99 system. The franchisee is responsible for all attorneys' fees and costs incurred by Floyds 99 as a result of exercising these management rights.
This clause protects Floyds 99 by ensuring they can take swift action to maintain the brand's standards and operational integrity without forfeiting other contractual rights. However, it also places a significant responsibility on the franchisee to cover legal costs associated with Floyds 99's intervention, even if the franchisee believes the intervention is unwarranted. Franchisees should be aware of this potential financial burden and ensure they understand the conditions under which Floyds 99 may exercise these rights.