Besides the franchisee, who else does Floyds 99 require to sign a Nondisclosure and Noncompetition Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
This is a Notice of Restrictive Covenants ("Notice") that Floyd's 99 Franchising, LLC ("Franchisor") requires the undersigned prospective franchisee (the "Prospective Franchisee") and the undersigned Prospective Franchisee's management personnel (which includes, the Principal Manager, Barbershop manager and owners of Prospective Franchisee; collectively, the "Management Personnel") to sign.
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- The Nondisclosure and Noncompetition Agreement ("NDA"), a form of which is attached as Exhibit I to the FDD, is provided to the Prospective Franchisee and the Management Personnel.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, in addition to the prospective franchisee, Floyds 99 requires the prospective franchisee's management personnel to sign the Nondisclosure and Noncompetition Agreement. The document defines "Management Personnel" as including the Principal Manager, Barbershop manager, and owners of the prospective franchisee.
This requirement ensures that all individuals involved in the management and operation of the Floyds 99 franchise are bound by the terms of the Nondisclosure and Noncompetition Agreement. This is a common practice in franchising to protect the franchisor's confidential information and prevent unfair competition.
Prospective franchisees should carefully review the terms of the Nondisclosure and Noncompetition Agreement and ensure that their management personnel are also aware of and willing to comply with these terms. It is important to understand the scope and duration of the non-compete provisions, as they may restrict the franchisee's and their management personnel's ability to engage in similar businesses after the franchise agreement is terminated.