What are 'Captive Audience Facilities' defined as within the Floyds 99 Franchise Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
to use and license others to use the Marks and Licensed Methods within or outside of the Protected Territory and, if applicable, the Development Area, 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, "big box" specialty retail centers, resorts and hotels and within office buildings. We and our affiliates reserve the right under the Franchise Agreement and Development Agreement to contract with Captive Audience Facilities to develop and operate Barbershops within the facilities and, if the contract includes such a location within your Protected Territory or Development Area, as the case may be, we will contact you and give you the opportunity to develop and operate the Barbershop within the Captive Audience Facility, on terms and conditions agreed to by us in the contract. You must respond within fifteen (15) days of being notified of any opportunity at a Captive Audience Facility whether you want to develop the location and you must comply with the terms of the contract we have negotiated. If you elect not to do so, we or one of our affiliates or another franchisee will have the right to develop the location and you will have no further rights pertaining to the location during the term of the contract. As of the date of this Disclosure Document, we do not have any Captive Audience Facilities under contract and we cannot guaranty that we will have any in the future in your Protected Territory or Development Area;
Source: Item 12 — TERRITORY (FDD pages 38–41)
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 significant foot traffic exists. These facilities include airports, transportation hubs, hospitals, college campuses, convention centers, grocery stores, department stores, "big box" specialty retail centers, resorts, hotels, and office buildings. Floyds 99 and its affiliates retain the right to contract with these facilities to develop and operate barbershops.
If a Captive Audience Facility is within a franchisee's Protected Territory or Development Area, Floyds 99 will offer the franchisee the opportunity to develop and operate the barbershop there, under terms and conditions agreed to in the contract between Floyds 99 and the facility. The franchisee has 15 days to respond to the offer and must comply with the negotiated contract terms. If the franchisee declines, Floyds 99 or another franchisee can develop the location, and the original franchisee loses any rights to that specific location during the contract term.
As of the date of the 2025 Disclosure Document, Floyds 99 does not have any Captive Audience Facilities under contract and cannot guarantee any will become available in a franchisee's Protected Territory or Development Area. This arrangement gives Floyds 99 flexibility to pursue opportunities in high-traffic areas while giving existing franchisees a first option within their territory, balancing corporate expansion with franchisee interests.