Can Floyds 99 change or designate suppliers of Proprietary Items?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the POS System, we require that you purchase from designated or approved sources, certain branded hair care products and other proprietary hair care accessories that we have developed ("Proprietary Items"). Lefty's is currently a manufacturer of Proprietary Items. Salon Innovations, Inc. (dba Pro47), a hair care products distribution company based in Minnesota which is unaffiliated with us, is the designated supplier of the Proprietary Items manufactured by Lefty's. We reserve the right to change or designate suppliers (including changing the suppliers to us or our affiliates) at our discretion in the future. We refrain from divulging the formulations for Proprietary Items because we maintain the formulations as trade secrets. Pro47 charges standard and customary prices for a professional hair care line selling directly to a volume purchasing group of salons. Pro47 charges the same prices to franchised Barbershops as it charges to company and affiliate-owned Barbershops.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–29)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, Floyds 99 retains the right to change or designate suppliers of Proprietary Items at their discretion in the future. Proprietary Items are defined as branded hair care products and other proprietary hair care accessories that Floyds 99 has developed. Currently, Lefty's is a manufacturer of Proprietary Items, and Salon Innovations, Inc. (dba Pro47) is the designated supplier.
This means that as a franchisee, you may be required to switch suppliers for these specific items if Floyds 99 decides to do so. This change could impact your costs, as you would be subject to the pricing and terms of the new designated supplier. It is important to note that Floyds 99 maintains the formulations for Proprietary Items as trade secrets.
This clause gives Floyds 99 significant control over the supply chain for key products sold in your barbershop. While the current supplier, Pro47, charges the same prices to franchised and company-owned locations, there is no guarantee that a future supplier would do the same. As a prospective franchisee, it would be prudent to inquire about the criteria Floyds 99 uses when selecting and changing suppliers, and whether franchisees have any input in the decision-making process.