Is there a renewal or extension option for the Floyds 99 Development Agreement term?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term (Development Agreement) | Section 3.1 | Varies based on development schedule. |
| b. | Renewal or extension of the term | Not Applicable | Not Applicable |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the Development Agreement does not offer a renewal or extension option. The table in Item 17, which summarizes key provisions of the Development Agreement, specifically indicates that renewal or extension of the term is "Not Applicable". This means that once the initial term of the Development Agreement expires, the developer does not have a contractual right to renew or extend the agreement.
This lack of a renewal option is a significant point for potential Floyds 99 developers. Unlike the Franchise Agreement, which does provide renewal options, developers need to be aware that their rights to develop within the designated territory cease at the end of the initial term unless a new agreement is negotiated. This could impact long-term business plans and investment strategies, as there is no guarantee of continued development rights beyond the original agreement's duration.
Prospective developers should carefully consider the development schedule outlined in the agreement and its implications. If the developer anticipates needing more time to fulfill the development schedule, this absence of a renewal option becomes even more critical. It would be prudent for potential developers to discuss the possibility of extensions or new agreements with Floyds 99 well in advance of the expiration date to ensure continued development rights, if desired.