What is the Associate's obligation regarding non-competition with Floyds 99?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
RECITALS
- D. Associate is or will become involved with the Company in the capacity of an officer, partner, director, agent, Principal Manager, employee, principal, beneficial owner or as an immediate family member of one of the foregoing persons, all of whom are associated with a FLOYD'S 99 Shop (the "Franchised Business") pursuant to the terms of a Franchise Agreement between the Company and the party identified as the "Franchisee" at the end of this Agreement, and in such capacity, Associate will become privileged as to certain Confidential Information; and
- E. Associate and the Company have reached an understanding with regard to nondisclosure by Associate of Confidential Information and with respect to noncompetition by Associate with the Company.
NOW THEREFORE, in consideration of the foregoing, the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Associate and the Company, intending legally to be bound, agree as follows:
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, an Associate is subject to certain non-competition obligations. As stated in the recitals, the Associate, by virtue of their relationship with a Floyds 99 shop, will gain access to confidential information and has agreed to certain non-disclosure and non-competition terms with Floyds 99.
Specifically, the Associate is bound by the terms outlined in the Associate Agreement, which addresses non-disclosure of confidential information and non-competition with Floyds 99. This agreement is made in consideration of the Associate's access to confidential information and the mutual promises outlined within the agreement.
Prospective franchisees should carefully review the Associate Agreement to fully understand the scope and duration of these non-competition obligations, as they could significantly impact the Associate's future business activities, particularly after their association with the Floyds 99 franchise ends. It is important to note that the definition of "Competitive Business" and the specific restrictions on the Associate's activities are detailed in the agreement and should be thoroughly examined.