Who are considered 'Franchisor Affiliates' in the context of the Floyds 99 agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Floyd's 99 Franchising, LLC (the "Company") is a limited liability company that was organized on February 23, 2005 in the state of Colorado. The Company is engaged in the business of franchising Floyd's 99 Barbershop facilities domestically. The Company is a wholly owned subsidiary of Floyd's 99 Holdings, LLC (Holdings).
The Company is part of a group of companies affiliated by common ownership. The operating results of the Company could vary significantly from those that would have occurred had the Company operated independently.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyd's 99 Franchising, LLC is part of a group of companies that are affiliated by common ownership. The FDD specifies that 'affiliates' include Floyd's 99 Holdings, LLC (Holdings), the wholly owned parent company of Floyd's 99 Franchising, LLC.
This affiliation is significant for prospective franchisees because the operating results of Floyds 99 Franchising, LLC could be influenced by its relationship with its parent company and other affiliated entities. This means that the financial performance of the franchisor as presented in the FDD may not be indicative of its performance as a standalone entity.
Furthermore, the confidentiality clause in the agreement extends to the Confidential Information of Floyds 99 and its affiliates. This means franchisees are prohibited from disclosing or using confidential information not only of Floyds 99 Franchising, LLC, but also of its affiliated companies like Floyd's 99 Holdings, LLC. This broadens the scope of information that franchisees must protect, potentially impacting their business operations and competitive activities.