Under what conditions can Floyds 99 terminate the Franchise Agreement with cause?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Section 19.1 | 10 years |
| b. | Renewal or extension of the | Sections 19.3 and | Term in then-current Franchise |
| term | 19.4 | Agreement. | |
| c. | Requirements for franchisee to renew or extend | Section 19.3 | Remodel, pay fee, sign new agreement and release. You may be asked to sign a contract with materially different terms and conditions than your original contract if you choose to renew. |
| d. | Termination by franchisee | Not Applicable | Not Applicable |
| e. | Termination by franchisor without cause | Not Applicable | Not Applicable |
| f. | Termination by franchisor with | Sections 20.1 and | We can terminate only if you commit |
| cause | 20.2 | any one of several listed violations. | |
| g. | “Cause” defined – curable | Sections 20.1 and | 30 days for operational defaults, 10 |
| defaults | 20.2 | days for monetary defaults. | |
| h. | “Cause” defined – non-curable defaults | Section 20.1 | Unauthorized disclosure, conviction of a crime, abandonment, unapproved transfers, bankruptcy, assignment for benefit of creditors, unsatisfied judgments, levy, foreclosure, repeated violations, misuse of Marks. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 can terminate the Franchise Agreement with cause if the franchisee commits any one of several listed violations, as detailed in Sections 20.1 and 20.2 of the Franchise Agreement. These violations are categorized into curable and non-curable defaults. For curable defaults, Floyds 99 provides a notice period to allow the franchisee to rectify the issue.
Specifically, the FDD states that franchisees have 30 days to cure operational defaults and 10 days to cure monetary defaults. However, certain defaults are considered non-curable, meaning they cannot be rectified after they occur.
Non-curable defaults that would allow Floyds 99 to terminate the Franchise Agreement include unauthorized disclosure of confidential information, conviction of a crime, abandonment of the business, unapproved transfers of the franchise, bankruptcy, assignment for the benefit of creditors, unsatisfied judgments, levy or foreclosure, repeated violations of the agreement, and misuse of Floyds 99's Marks. These conditions provide Floyds 99 with specific grounds for terminating the agreement to protect their brand and system standards.