What is the timeframe for an unsatisfied judgment against a Floyds 99 Franchisee to trigger 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, if a material judgment is obtained against a franchisee, the franchisor can terminate the franchise agreement if the judgment remains unsatisfied for 30 days or longer. However, this is only applicable if a supersedeas or other appeal bond has not been filed.
Additionally, if execution is levied against the franchisee's business or any property used in the operation of the Floyds 99 shop, the franchisee has only five days to discharge it. Failure to do so can also result in termination of the franchise agreement. Similarly, if the real or personal property of the franchisee's business is sold after levy by a sheriff, marshal, or constable, it can lead to termination.
These conditions highlight the importance of maintaining sound financial standing and addressing legal judgments promptly to avoid potential termination of the Floyds 99 franchise agreement. Franchisees should be aware of these stipulations and take necessary precautions to manage their financial and legal obligations effectively.