What sections of the Floyds 99 Franchise Agreement apply to the franchisee after termination following a hold-over period?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.2 Continuation. If for any reason, the Franchisee continues to operate the Barbershop beyond the term of this Agreement or any subsequent renewal period, it shall be deemed to be on a month-to-month basis under the terms of this Agreement and subject to termination upon 30 days' notice or as required by law. If said hold-over period exceeds 90 days, this Agreement is subject to immediate termination unless applicable law requires a longer period. Upon termination after any hold-over period, the Franchisee and those in active concert with the Franchisee, including family members, officers, directors, partners and managing agents, are subject to the terms of Sections 20.3, 20.4, 22.2 and 22.3 of this Agreement and all other applicable post-termination obligations contained in this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, if a franchisee continues to operate the barbershop beyond the initial 10-year term or any renewal period, it is considered a month-to-month arrangement. This hold-over period is subject to termination with a 30-day notice, or as required by law. If this hold-over exceeds 90 days, the agreement can be terminated immediately unless a longer period is legally mandated.
Upon termination after any hold-over period, the franchisee and those associated with them, including family members, officers, directors, partners, and managing agents, are subject to specific sections of the Franchise Agreement. These include Sections 20.3, 20.4, 22.2, and 22.3, as well as all other applicable post-termination obligations outlined in the agreement.
In practical terms, this means that even after the franchise agreement has been terminated following a hold-over period, certain obligations and restrictions still apply to the former franchisee. These sections likely cover topics such as non-compete clauses, confidentiality, and the franchisor's right to purchase the Floyds 99 shop. Prospective franchisees should carefully review these sections to understand their responsibilities even after the agreement ends.