Under what circumstances can Floyds 99 terminate a Development Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The continuation of your right to your Development Area during the term of the Development Agreement is dependent on meeting the development schedule set forth in the Development Agreement. If you do not meet your development schedule, we may: (a) terminate your Development Agreement, (b) operate or grant franchises to others to operate FLOYD'S 99 Shops within the Development Area, or (c) reduce the Development Area and the development schedule to a size and magnitude that we in our discretion estimate you are capable of operating.
Source: Item 12 — TERRITORY (FDD pages 38–41)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the continuation of a franchisee's right to their Development Area is contingent upon meeting the development schedule outlined in the Development Agreement. If a franchisee fails to meet this schedule, Floyds 99 has several options.
Specifically, Floyds 99 may choose to terminate the Development Agreement entirely. Alternatively, instead of termination, Floyds 99 can opt to operate its own Floyds 99 Shops within the Development Area or grant franchises to others to do so. As another option, Floyds 99 could reduce the size of the Development Area and adjust the development schedule to a scale that it believes the franchisee is capable of managing.
This clause in the Development Agreement is a standard practice in franchising, designed to ensure that franchisees are actively developing their territories and that the brand is expanding as planned. It is important for prospective Floyds 99 franchisees to carefully review the development schedule in the Development Agreement and assess their ability to meet those obligations. Failure to do so could result in the loss of their development rights or the termination of their agreement.