Under what conditions can the Floyds 99 Franchise Agreement be terminated sooner than the stated term?

• 19.1 Term. The term of this Agreement is for a period of 10 years from the date of this Agreement, unless sooner terminated as provided herein.
• 20.2 Termination by Franchisor Thirty Days' Notice.

The Franchisor shall have the right to terminate this Agreement (subject to any state laws to the contrary, where state law shall prevail), effective upon 30 days written notice to the Franchisee, if the Franchisee breaches any other provision of this Agreement and fails to cure the default during such 30 day period.

In that event, this Agreement will terminate without further notice to the Franchisee, effective upon expiration of the 30 day period.

Defaults shall include, but not be limited to, the following:

• a. Failure to Maintain Standards.

The Franchisee fails to maintain the then current operating procedures and adhere to the specifications and standards established by the Franchisor as set forth herein or in the Operations Manual or otherwise communicated to the Franchisee;

• b. Deceptive Practices.

The Franchisee engages in any unauthorized business or practice or sells any unauthorized product or service under the Franchisor's Marks or under a name or mark which is confusingly similar to the Franchisor's Marks;

• c. Failure to Obtain Consent. The Franchisee fails, refuses or neglects to obtain the Franchisor's prior written approval or consent as required by this Agreement;
• d. Failure to Comply with Manual. The Franchisee fails or refuses to comply with the then-current requirements of the Operations Manual; or
• e. Breach of Related Agreement. The Franchisee defaults under any term of any sublease or lease assignment for the Franchised Location, any product supply agreement, any security agreement, any other agreement material to the FLOYD'S 99 Shop or any other Franchise Agreement or other contract between the Franchisor, on the one hand, and the Franchisee or a Franchisee affiliate, on the other hand, and such default is not cured within the time specified in such sublease, product supply agreement, other agreement, contract or other Franchise Agreement. The Franchisor will provide the Franchisee the same cure rights with respect to defaults under such other agreements with the Franchisor as the Franchisee has under this Agreement.

Notwithstanding the foregoing, if the breach is curable, but is of a nature which cannot be reasonably cured within the 30-day period and the Franchisee has commenced and is continuing to make good faith efforts to cure the breach during the 30-day period, the Franchisee shall be given an additional reasonable period of time to cure the breach, and this Agreement shall not automatically terminate without written notice from the Franchisor.

• 20.3 Option to Purchase.

Upon termination or expiration of this Agreement for any reason, the Franchisor shall have the option to purchase the FLOYD'S 99 Shop or all or a portion of the assets of the Barbershop, which may include, at the Franchisor's option, all of the Franchisee's interest, if any, in and to the real estate upon which the FLOYD'S 99 Shop is located, and all buildings and other improvements thereon, including leasehold interests, at fair market value, less any amount apportioned to the goodwill of the FLOYD'S 99 Shop which is attributable to the Franchisor's Marks and Licensed Methods, and less any amounts owed to the Franchisor by the Franchisee.

20.7 State and Federal Law. THE PARTIES ACKNOWLEDGE THAT IF THE TERMS OF THIS AGREEMENT REGARDING TERMINATION OR EXPIRATION ARE INCONSISTENT WITH APPLICABLE STATE OR FEDERAL LAW, SUCH LAW SHALL GOVERN THE FRANCHISEE'S RIGHTS REGARDING TERMINATION OR EXPIRATION OF THIS AGREEMENT.

Source: Item 22 — CONTRACTS (FDD pages 57–58)