Under the Floyds 99 Development Agreement, what rights does the Developer have to terminate the agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
9.4 State and Federal Law. THE PARTIES ACKNOWLEDGE THAT IN THE EVENT THAT THE TERMS OF THIS AGREEMENT REGARDING TERMINATION OR EXPIRATION ARE INCONSISTENT WITH APPLICABLE STATE OR FEDERAL LAW, SUCH LAW SHALL GOVERN DEVELOPER'S RIGHTS REGARDING TERMINATION OR EXPIRATION OF THIS AGREEMENT.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
Based on the 2025 Floyds 99 Franchise Disclosure Document, the agreement acknowledges that state and federal laws may govern a developer's rights regarding termination or expiration of the agreement. Therefore, if the terms outlined in the agreement are inconsistent with applicable state or federal law, the law will take precedence in determining the developer's rights. This implies that a Floyds 99 developer's ability to terminate the agreement is not solely dictated by the franchise agreement itself but is also subject to legal protections afforded by relevant statutes.
This clause serves as a safeguard for the developer, ensuring that they are not bound by contractual terms that may infringe upon their statutory rights. It is important for prospective Floyds 99 developers to be aware of the specific termination rights and obligations in their jurisdiction. This may require consulting with a legal professional to understand the interplay between the franchise agreement and any applicable state or federal laws.
While the Floyds 99 agreement does not explicitly detail the developer's termination rights, it acknowledges the importance of external legal frameworks in governing these rights. This means that developers should not rely solely on the franchise agreement but should also consider the broader legal landscape to fully understand their position. This clause ultimately provides a layer of protection for developers, ensuring that their rights are not limited by potentially conflicting contractual terms.