What business relationships are Floyds 99 franchisees prohibited from maintaining with individuals added to the Annex?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Therefore, other than the FLOYD'S 99 Shop licensed herein or authorized by separate agreement with the Franchisor, neither the Franchisee nor any of the Franchisee's officers, directors, shareholders, Principal Managers, Barbershop managers, equity owners, members, managers or partners, nor any member of his or their immediate families, shall during the term of this Agreement:
a. have any direct or indirect controlling interest as a disclosed or beneficial owner in a "Competitive Business" as defined below;
b. perform services as a director, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business; or
c. divert or attempt to divert any business related to, or any client or account of the FLOYD'S 99 Shop, the Franchisor's business or any other FLOYD'S 99 franchisee's business, by direct inducement or otherwise, or divert or attempt to divert the employment of any employee of the Franchisor or another franchisee licensed by the Franchisor to use the Marks and Licensed Methods, to any Competitive Business by any direct inducement or otherwise.
d.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
Based on the 2025 Floyds 99 Franchise Disclosure Document, Item 22 outlines restrictive covenants that address business relationships. Specifically, during the term of the Franchise Agreement, a franchisee and their related parties (officers, directors, shareholders, Principal Managers, Barbershop managers, equity owners, members, managers, partners, and immediate family members) are restricted from engaging in certain activities with a "Competitive Business."
These restrictions include having any direct or indirect controlling interest as a disclosed or beneficial owner in a Competitive Business. They are also prohibited from performing services as a director, officer, manager, employee, consultant, representative, or agent for a Competitive Business. Furthermore, franchisees are not allowed to divert or attempt to divert any business, clients, or accounts from the Floyds 99 Shop, the Franchisor's business, or any other Floyds 99 franchisee's business to a Competitive Business, nor can they attempt to divert the employment of any employee of the Franchisor or another franchisee to any Competitive Business.
These covenants aim to protect Floyds 99's licensed methods, which include operations, proprietary products and formulas, vendor lists, marketing, and advertising materials. The franchisor considers this information commercially valuable, with its value stemming from the time, effort, and money invested in its compilation and its use by all franchisees within the Floyds 99 system. The FDD does not specifically mention an "Annex" or individuals added to it, so it is unclear if these restrictions would apply to individuals added to such a list.