What are 'Captive Audience Facilities' in the context of a Floyds 99 franchise agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. to use and license others to use the Marks and Licensed Methods within or outside the Protected Territory in connection with the operation of Barbershops within "Captive Audience Facilities" which are defined as facilities where people are congregating for a primary purpose unrelated to the Barbershop business, creating significant foot traffic in the facility, including airports and other transportation hubs, hospitals, college campuses, convention centers, grocery stores, department stores, resorts and hotels and within office buildings, but not including lifestyle centers, town centers, "big box" retail centers and regional shopping malls.
The Franchisor and its affiliates reserve the right to contract with Captive Audience Facilities to develop and operate Barbershops within these facilities and, if the contract includes such a location within the Franchisee's Protected Territory, the Franchisor will notify the Franchisee of the opportunity to
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, 'Captive Audience Facilities' are defined as locations where people gather for a primary purpose unrelated to getting a haircut, but where there is significant foot traffic. These facilities include airports, transportation hubs, hospitals, college campuses, convention centers, grocery stores, department stores, resorts, hotels, and office buildings. However, the definition specifically excludes lifestyle centers, town centers, "big box" retail centers, and regional shopping malls.
Floyds 99 reserves the right to operate or contract with others to operate barbershops within these Captive Audience Facilities. If such a facility is located within a franchisee's protected territory, Floyds 99 will offer the franchisee the opportunity to develop and operate the barbershop under the terms negotiated by Floyds 99. The franchisee has 15 days to respond to this offer.
If the franchisee declines the opportunity, Floyds 99, its affiliates, or another franchisee may be granted the right to develop the barbershop in the Captive Audience Facility. In this case, the original franchisee will not have any further rights to that specific location during the term of the contract between Floyds 99 and the Captive Audience Facility. This clause ensures that Floyds 99 can capitalize on opportunities in high-traffic areas, even if they fall within a franchisee's protected territory, while still giving the franchisee the first option to expand.