Can Floyds 99 terminate the Development Agreement without cause?

According to Floyds 99's 2025 Franchise Disclosure Document, Floyds 99 cannot terminate the Development Agreement without cause. The FDD outlines specific conditions under which Floyds 99 can terminate the Development Agreement, all of which require cause.

The Development Agreement can be terminated if the franchisee defaults on the Development Agreement or any of the Franchise Agreements. Cause includes both curable and non-curable defaults. Curable defaults require 30 days' notice of breach of the Development Agreement or Franchise Agreement. Non-curable defaults include material misrepresentation, failure to meet the development schedule, conviction of a crime, failure to pay amounts due to Floyds 99, unapproved transfers, misuse of Marks, death or disability of the Developer, unauthorized disclosure, noncompliance with restrictive covenants, terrorist activities, bankruptcy, assignment for benefit of creditors, default under the Franchise Agreement or other agreements, notice of termination of Franchise Agreement delivered to Developer by Franchisor, or Developer terminates a Franchise Agreement without cause.

This is a fairly standard arrangement in franchising, as franchisors typically need valid, documented reasons to terminate an agreement to avoid legal challenges. The detailed list of causes provides clarity and protection for both Floyds 99 and the franchisee, ensuring that termination is based on objective criteria rather than arbitrary decisions. Prospective franchisees should carefully review these termination clauses to understand their rights and obligations under the Development Agreement.