Can Floyds 99 agree to a different arrangement regarding the franchisee's participation in the direct operation of the business?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless we agree to a different arrangement, you are required to participate personally in the direct operation of your first FLOYD'S 99 Shop and to maintain an active role in overseeing day-to-day operations of second and subsequent Shops, though you are not required to live in the Protected Territory or the Development Area, for your Shops. You will need to designate a manager ("Principal Manager") to be responsible for the direct on-premises supervision of the second and subsequent Barbershop(s) at all times during their hours of operation. If you are a corporation, limited liability company or partnership, we do not require that your Principal Manager own an equity interest in the entity. You or, if applicable, the Principal Manager and your other Barbershop managers, must successfully complete our mandatory initial training program for a FLOYD'S 99 Shop. You and your managers, including your Principal Manager and all Barbershop managers, must enter into a nondisclosure and noncompetition agreement with us (Exhibit I to this Disclosure Document), which restricts individuals and members of their immediate families, including spouses, children and any other relative living with them. We make no recommendations and have no requirements regarding employment or other written agreements between you and your employees.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 43–44)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees are generally expected to participate personally in the direct operation of their first shop. For subsequent shops, franchisees must maintain an active role in overseeing day-to-day operations but are not required to live in the protected territory or development area. A Principal Manager must be designated for on-premises supervision of these additional barbershops.
However, Floyds 99 may agree to a different arrangement regarding the franchisee's participation. This provides some flexibility, although the specific circumstances under which Floyds 99 might agree to an alternative arrangement are not detailed in this section. Franchisees and their managers, including the Principal Manager, must complete Floyds 99's mandatory initial training program and sign a non-disclosure and non-competition agreement.
This flexibility could be beneficial for franchisees who plan to open multiple locations but may not be able to personally manage each one. It is important for prospective franchisees to discuss potential alternative arrangements with Floyds 99 during the due diligence process to understand the conditions under which such arrangements might be approved. Understanding these conditions is crucial for planning the operational structure of the franchise.