Under what condition are Costs and Attorneys' Fees payable for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Costs and Attorneys' Fees1 | Will vary depending on nature of your default | As incurred | Payable upon your failure to comply with the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees may incur costs and attorneys' fees. These fees are not a fixed amount but will vary depending on the nature of the default. These costs become payable if the franchisee fails to comply with the Franchise Agreement.
This means that if a Floyds 99 franchisee violates the terms of their agreement with the franchisor, they may be responsible for covering not only their own legal costs but also Floyds 99's legal expenses. This could include a range of violations, from failure to meet brand standards to non-payment of royalties or other fees.
Franchisees should carefully review the Franchise Agreement to understand what constitutes a default and what actions could trigger the assessment of costs and attorneys' fees. Understanding these obligations is crucial for managing the financial risks associated with operating a Floyds 99 franchise.