What actions are considered 'misuse of marks' by a Floyds 99 Franchisee that could lead to termination?

According to Floyds 99's 2025 Franchise Disclosure Document, a franchisee's misuse of the company's marks can lead to termination of the franchise agreement. Specifically, if a franchisee misuses the Floyds 99 marks or fails to follow the franchisor's directions and guidelines regarding their use, it constitutes grounds for termination. However, the franchisee is given a 10-day period after notification from Floyds 99 to correct the misuse or failure. If the franchisee rectifies the issue within this timeframe, termination may be avoided.

This provision underscores the importance Floyds 99 places on protecting its brand identity and ensuring consistent representation across all franchise locations. The marks, including the "FLOYD'S 99" service mark, are under the exclusive ownership and control of the franchisor or its affiliate, Floyd's 99 Holdings, LLC. Franchisees are required to display these marks prominently at their barbershop premises, on furnishings, packaging, and in all advertising and marketing materials, adhering to the franchisor's prescribed manner.

Furthermore, franchisees are restricted from using any marks other than "FLOYD'S 99" or those specified by the franchisor in the identification, marketing, promotion, or operation of their Floyds 99 shop. They are also prohibited from using the marks as part of an email address or on internet sites, and they cannot register any of the marks as part of a domain name on the internet, unless explicitly permitted in the Operations Manual. These restrictions highlight the franchisor's efforts to maintain brand uniformity and prevent any unauthorized use of its intellectual property.

Failure to comply with these brand usage guidelines and not rectifying the misuse within the given 10-day notice period can result in the termination of the franchise agreement, emphasizing the franchisee's responsibility to adhere to the franchisor's brand standards and protect the integrity of the Floyds 99 brand.