Can an Associate of a Floyds 99 franchise divert business from another franchisee's business?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) divert or attempt to divert any business related to, or any client or account of any FLOYD'S 99 Shop, Franchisor's business or any other FLOYD'S 99 Developer's business, by direct inducement or otherwise, or divert or attempt to divert the employment of any employee of Franchisor, another developer or another franchisee licensed by Franchisor to use the Marks and Licensed Methods, to any Competitive Business by any direct inducement or otherwise.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, an Associate of a Floyds 99 franchise is restricted from diverting business from other franchisees. The franchise agreement prohibits the Associate from diverting or attempting to divert business related to any Floyds 99 shop, the Franchisor's business, or any other Floyds 99 Developer's business. This includes attempts to divert clients or accounts through direct inducement or other means.
This restriction also extends to preventing the inducement of employees of the Franchisor, another developer, or another franchisee to any Competitive Business. A Competitive Business is not defined in this excerpt. This non-compete clause is in effect during the term of the Franchise Agreement.
This provision protects the Floyds 99 brand and its franchisees by preventing unfair competition and maintaining the integrity of the franchise system. It ensures that all franchisees and developers benefit from the collective efforts and investments made in the Floyds 99 system. A prospective franchisee should carefully review the definition of "Competitive Business" in the full Franchise Agreement to understand the scope of these restrictions.