factual

What is the consequence if a Floyds 99 franchisee's employee provides services they are not licensed to provide?

Floyds_99 Franchise · 2025 FDD

Answer from 2025 FDD Document

The Franchisee shall provide the Franchisor with copies of all barbering and cosmetology licenses held by the Franchisee and each of its employees upon request.

Each of the Franchisee's employees shall provide only those services to clients that they are licensed to provide.

The Franchisee shall be solely responsible for any penalties or fines assessed for failure to abide by such laws and regulations.

Source: Item 22 — CONTRACTS (FDD pages 57–58)

What This Means (2025 FDD)

According to Floyds 99's 2025 Franchise Disclosure Document, franchisees must ensure their employees only provide services for which they are licensed. The franchisee is responsible for any penalties or fines resulting from violations of laws and regulations. This includes instances where an employee provides services beyond their licensed scope. Floyds 99 requires franchisees to provide copies of barbering and cosmetology licenses for themselves and their employees upon request.

This requirement places a significant responsibility on the franchisee to verify and monitor the licenses of their staff. Failure to do so can lead to fines and penalties, directly impacting the franchisee's financial stability. Additionally, any negative publicity stemming from such violations could harm the reputation of both the franchisee's shop and the Floyds 99 brand as a whole.

To mitigate these risks, prospective Floyds 99 franchisees should establish robust hiring and training procedures. These procedures should include thorough verification of employee licenses, ongoing monitoring of license validity, and comprehensive training to ensure employees understand the scope of services they are permitted to provide. Franchisees should also maintain detailed records of employee licenses and training to demonstrate compliance with Floyds 99's requirements and applicable laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.