What is the timeframe for discharging a levy against a Floyds 99 Franchisee's business to avoid termination?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
If any material judgment (or several judgments which in the aggregate are material) is obtained against the Franchisee and remains unsatisfied or of record for 30 days or longer (unless a supersedeas or other appeal bond has been filed); or if execution is levied against the Franchisee's business or any of the property used in the operation of the FLOYD'S 99 Shop and is not discharged within five days; or if the real or personal property of the Franchisee's business shall be sold after levy thereupon by any sheriff, marshal or constable;
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a franchisee has a limited time to resolve a levy against their business to avoid potential termination of their franchise agreement. Specifically, if execution is levied against the franchisee's business or any property used in its operation, the franchisee must discharge the levy within five days.
Failure to discharge the levy within this five-day period can trigger the franchisor's right to terminate the franchise agreement. This is a critical point for prospective franchisees to understand, as it highlights the importance of maintaining sound financial management and addressing any legal or financial issues promptly. The short timeframe underscores the potential for swift action by Floyds 99 in response to financial distress signals.
This clause is designed to protect the Floyds 99 brand and ensure the stability of its franchise network. By setting a strict deadline for resolving levies, the franchisor aims to minimize the risk of financial instability or legal issues affecting individual franchise locations, which could ultimately impact the brand's reputation and the performance of other franchisees. Franchisees should be aware of this requirement and have contingency plans in place to address any potential levies or judgments against their business.