For Floyds 99, what is the consequence of not successfully completing the initial training program by the Principal Manager?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Successful completion of the initial training program by the Principal Manager is a prerequisite to perform the duties of the Principal Manager.
If Franchisor determines in its sole judgment that the operation of the Franchisee's FLOYD'S 99 Shop is not being conducted or managed properly, is not being operated by an individual who has successfully completed Franchisor's mandatory initial training program, or if a default occurs, then to prevent an interruption of the operation of Franchisee's FLOYD'S 99 Shop which would cause harm to the FLOYD'S 99 system and thereby lessen its value, Franchisee authorizes Franchisor to appoint an interim Principal Manager to operate and manage Franchisee's FLOYD'S 99 Shop for as long as Franchisor deems necessary and practical, and without waiver of any other rights or remedies which Franchisor may have under this Agreement ("Franchisor's Management Rights").
In Franchisor's sole judgment, Franchisor may deem Franchisee incapable of operating Franchisee's FLOYD'S 99 Shop if, without limitation, Franchisee is absent or incapacitated by reason of illness or death; Franchisee has failed to pay when due or has failed to remove any and all liens or encumbrances of every kind placed upon or against the Franchisee's FLOYD'S 99 Shop; or Franchisor determines that operational problems require that Franchisor appoint an interim Principal Manager to operate and manage Franchisee's FLOYD'S 99 Shop for a period of time that Franchisor determines, in its sole discretion, to be necessary to maintain the operation of the Franchisee's FLOYD'S 99 Shop as a going concern.
Franchisor shall keep in a separate account all monies generated by the operation of the Franchisee's FLOYD'S 99 Shop, less the expenses of Franchisee's FLOYD'S 99 Shop, including reasonable compensation and expenses for Franchisor's representatives.
Franchisor has the right to charge a reasonable management fee (in addition to the Royalties, National Marketing Contributions and other amounts payable under this Agreement) during the period that Franchisor's appointed Principal Manager manages Franchisee's FLOYD'S 99 Shop.
If Franchisor exercises Franchisor's Management Rights, Franchisee agrees to hold harmless Franchisor and its representatives for all actions occurring during such temporary operation.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, successful completion of the initial training program by the Principal Manager is a prerequisite to performing their duties. If Floyds 99 determines that the barbershop is not being managed properly or is not being operated by someone who has completed the mandatory initial training, they can appoint an interim Principal Manager. This is to prevent any interruption of the barbershop's operation that could harm the Floyds 99 system.
Floyds 99 has the right to appoint an interim Principal Manager if the franchisee is absent, incapacitated, has failed to pay or remove liens, or if operational problems necessitate it. The interim manager will operate the barbershop for as long as Floyds 99 deems necessary.
Floyds 99 will keep all monies generated by the barbershop in a separate account, deducting the expenses of the barbershop and compensation for their representatives. Floyds 99 can also charge a reasonable management fee in addition to royalties, national marketing contributions, and other amounts already payable under the agreement. The franchisee agrees to hold harmless Floyds 99 and its representatives for all actions occurring during this temporary operation.