Under the Floyds 99 Development Agreement, what right is granted to the franchisee regarding establishing shops?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the terms of the Development Agreement, we grant to you the right to establish, according to a schedule, a minimum number of FLOYD'S 99 Shops within a larger geographical territory ("Development Area"). The Development Area is not an exclusive territory and is subject to our reservation of rights described below. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. A Development Area is usually defined by political boundaries such as
Source: Item 12 — TERRITORY (FDD pages 38–41)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Development Agreement grants the franchisee the right to establish a minimum number of Floyds 99 shops within a larger geographical territory, referred to as the "Development Area", according to a set schedule. However, this Development Area is not exclusive and is subject to certain reservations of rights by Floyds 99.
The number of Floyds 99 shops required to be developed within the Development Area may be adjusted based on factors such as population density, income levels, and the nature of the area (urban, suburban, or rural). The continuation of the franchisee's rights to the Development Area is contingent upon meeting the development schedule outlined in the Development Agreement.
Floyds 99 retains the right to use and license others to use their marks and methods outside of the franchisee's Protected Territory and Development Area. If the franchisee fails to meet the development schedule, Floyds 99 has the option to terminate the Development Agreement, operate or franchise others to operate Floyds 99 shops within the Development Area, or reduce the size and development schedule of the Development Area to a level that Floyds 99 deems the franchisee capable of managing. This means that while the Development Agreement provides an opportunity for expansion, it also carries the risk of losing territory or the entire agreement if the development schedule is not met.