Under what conditions can the license between FFL and Holdings be terminated regarding the Floyds 99 franchise?

According to Floyds 99's 2025 Franchise Disclosure Document, the license agreement between FFL and Holdings, which grants FFL the right to use and license the Floyds 99 trademarks to franchisees, has specific conditions for termination. The license, originally granted in March 2005, is for 10-year terms that automatically renew.

The license can only be terminated under two specific conditions: first, through the mutual agreement of both FFL and Holdings; or second, following a notice of default issued to the defaulting party, coupled with a cure period to allow the party to rectify the default. This means that unless both parties willingly agree to end the license, it remains in effect unless one party fails to meet its obligations, and even then, the defaulting party has an opportunity to correct the issue.

In the event that the license between FFL and Holdings is terminated, the FDD states that all of FFL's rights and obligations under the Franchise Agreements with individual franchisees are automatically assigned to Holdings. This provision is designed to ensure continuity for the franchisees, meaning that even if the licensing agreement between FFL and Holdings ends, the franchisees can continue operating their Floyds 99 locations under the same terms, now managed directly by Holdings. This transfer of rights aims to protect the franchisees' investments and operational stability.