Are Floyds 99 or its affiliates currently approved or designated suppliers of any items or services franchisees are required to purchase?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ain items of specified furnishings, supplies, inventory or equipment directly from us or Holdings if we purchase such items in bulk.
We and our affiliates are not currently approved or designated suppliers of any items or services you are required to purchase for your Barbershop with the exception of Elevate, which provides information technology services, and Lefty's, which is a manufacturer of FLOYD'S 99 Proprietary Products. We reserve the right to require you to purchase some or all of the items or services used in your Barbershop from us or our affiliates upon 30 days' written notice to you.
Other than Lefty's and Elevate, we are not currently affiliated with any designated or approved suppliers. Three of our officers are also officers of Holdings and Lefty's, but none of our officers own an interest in Lefty's, a wholly owned subsidiary of Holdings. Three of our officers own an interest in Holdings, the parent of Lefty's. Three of our officers also own minority interests in Elevate. FFL, on behalf of itself and its affiliates, reserves the right to sell products, equipment, supplies and services to franchisees and to derive revenue from such sales. Lefty's currently manufactures Proprietary Items for sale in the Barbershops and Elevate currently provides information technology services to franchisees. For the fiscal year ending December 31, 2024: (1) Lefty's revenues related to purchases of Proprietary Items by our franchisees was $722,268, or 33% of Lefty's total revenue of $1,956,463, and (2) Elevate's revenues from purchases made by our franchisees was $131,040, or 31% of Elevate's total revenue of $422,811. We estimate that the costs of your purchases from designated or approved sources, or according to our standards and specifications, may range from 50% to 75% of the total
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–29)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, Floyds 99 and its affiliates are currently approved or designated suppliers for certain items and services. Specifically, Elevate provides information technology services, and Lefty's manufactures Floyds 99 Proprietary Products. However, Floyds 99 reserves the right to require franchisees to purchase some or all items or services from them or their affiliates with 30 days' written notice.
Lefty's, a wholly-owned subsidiary of Holdings, generated revenues of $722,268 from franchisee purchases of Proprietary Items, representing 33% of Lefty's total revenue of $1,956,463 for the fiscal year ending December 31, 2024. During the same period, Elevate's revenues from franchisee purchases totaled $131,040, which was 31% of Elevate's total revenue of $422,811. Three officers of Floyds 99 are also officers of Holdings and Lefty's, while three officers own minority interests in Elevate.
The FDD states that the estimated costs of purchases from designated or approved sources, or according to Floyds 99's standards and specifications, may range from 50% to 75% of the total cost of establishing a Floyds 99 shop. After the shop is established, these purchases are estimated to be approximately 5% to 15% of the total operating costs. This indicates that franchisees can expect a significant portion of their initial and ongoing expenses to be directed towards approved suppliers and products as mandated by Floyds 99.