Under what conditions can Floyds 99 terminate the Development Agreement if the developer defaults on the Development Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| f. | Termination by franchisor with cause | Section 9.1 | We can terminate if you default on the Development Agreement or any of your Franchise Agreements. |
| g. | "Cause" defined – curable defaults | Section 9.2 | 30 days' notice of breach of Development Agreement or Franchise Agreement. |
| h. | "Cause" defined – non-curable defaults | Section 9.1 | Material misrepresentation, failure to meet development schedule, conviction of a crime, failure to pay amounts due to Franchisor, unapproved transfers, misuse of Marks, death or disability of Developer, unauthorized disclosure, noncompliance with restrictive covenants, terrorist activities, bankruptcy, assignment for benefit of creditors, default under Franchise |
| Provision | Section in Development Agreement | Summary | |
| ---- | ------------------------------------------------------------------------------ | ---------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Agreement or other agreements, notice of termination of Franchise Agreement delivered to Developer by Franchisor or Developer terminates a Franchise Agreement without cause. | |||
| i. | Franchisee's obligations on termination / nonrenewal | Section 9.3 | Loss of development rights, cease use of Marks and confidential information except in connection with Barbershops currently operating; covenant not to compete. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, Floyds 99 can terminate the Development Agreement if the developer defaults on the Development Agreement or any of the Franchise Agreements. If the default is curable, Floyds 99 will provide 30 days' notice of the breach of the Development Agreement or Franchise Agreement.
However, certain defaults are not curable. These include material misrepresentation, failure to meet the development schedule, conviction of a crime, failure to pay amounts due to Floyds 99, unapproved transfers, misuse of Marks, death or disability of the Developer, unauthorized disclosure, noncompliance with restrictive covenants, terrorist activities, bankruptcy, assignment for benefit of creditors, default under a Franchise Agreement or other agreements, notice of termination of a Franchise Agreement delivered to Developer by Floyds 99, or the Developer terminating a Franchise Agreement without cause.
Upon termination of the Development Agreement, the developer will lose development rights and must cease the use of Floyds 99's Marks and confidential information, except when operating existing Barbershops. Additionally, the developer is subject to a covenant not to compete.