What constitutes 'Compliance' with the Floyds 99 Franchise Agreement for renewal purposes?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee shall comply with this Agreement and the Operations Manual.
In addition to all other obligations contained in this Agreement and in the Operations Manual, the Franchisee shall comply with the following operational obligations.
- a.
Quality of Operations.
The Franchisee shall maintain clean, efficient and high quality FLOYD'S 99 Shop operations and shall operate the business in accordance with the Operations Manual and in such a manner as not to detract from or adversely reflect upon the name and reputation of the Franchisor and the goodwill associated with the Floyd's 99 Franchising, LLC name and the Marks.
- b.
Compliance with Laws and Good Business Practices.
The Franchisee shall conduct itself and operate its FLOYD'S 99 Shop in compliance with all applicable federal, state and local laws, regulations and other ordinances, including, without limitation, barbering and cosmetology regulations, health and public safety orders and regulations, barbering and cosmetology licensing laws, music licensing laws, data security laws, privacy laws, and other orders, ordinances and regulations in such a manner so as to promote a good public image in the business community.
In connection therewith, the Franchisee will be solely and fully responsible for obtaining any and all licenses to carry on business at the FLOYD'S 99 Shop.
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.
In addition, the Franchisee shall provide to the Franchisor immediately copies of all barbering and cosmetology board, health and sanitation department, fire department, building department, and other state or local entity or agency warnings, notices of deficiency or non-compliance, reports of inspections and other documents indicating that the Franchisee has not met or maintained the highest governmental standards as and when such reports, notices and documents become available.
The Franchisee shall be solely responsible for any penalties or fines assessed for failure to abide by such laws and regulations.
- c.
Management.
The Franchisee acknowledges that proper management of the FLOYD'S 99 Shop is important and shall insure that one of the principal owners of the Franchisee entity and, if applicable, the designated Principal Manager who has completed the Franchisor's initial training program, are responsible for the management of the FLOYD'S 99 Shop at all times.
The Franchisee acknowledges and agrees that if this is the first Franchise Agreement between the
Franchisee and the Franchisor, the Franchisee's principal owner shall be actively involved in the day-to-day management of the FLOYD'S 99 Shop.
- d.
Approved Services and Products.
The Franchisee shall offer only services and products through its Barbershop which meet or exceed the minimum standards and specifications established by the Franchisor more fully described in the Operations Manual.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, maintaining compliance with the Franchise Agreement involves several key operational and legal aspects. Floyds 99 franchisees must operate their shops according to the standards and specifications detailed in the Franchise Agreement and the Operations Manual, which Floyds 99 can modify periodically with 30 days' written notice. This includes adhering to standards for products, services, location, equipment, furniture, hair care products, inventory policies, employee attire, supplies, and advertising materials. Compliance with the Operations Manual is considered vitally important for protecting the reputation and goodwill of the Floyds 99 brand.
Operationally, franchisees must maintain clean, efficient, and high-quality shop operations that reflect positively on the Floyds 99 brand. This includes complying with all applicable federal, state, and local laws, regulations, and ordinances, such as barbering and cosmetology regulations, health and public safety orders, music licensing laws, data security laws, and privacy laws. Franchisees are responsible for obtaining all necessary licenses to operate their Floyds 99 shop and must provide copies of barbering and cosmetology licenses for themselves and their employees upon request. They must also inform Floyds 99 immediately of any warnings, notices of deficiency, or non-compliance reports from governmental entities.
Furthermore, franchisees must ensure proper management of their Floyds 99 shop, with a principal owner or designated Principal Manager actively involved in day-to-day operations, especially if it is their first franchise agreement with Floyds 99. They must offer only services and products that meet or exceed Floyds 99's minimum standards and specifications. Franchisees are also responsible for ensuring their employees comply with operational standards and all relevant laws and regulations, hiring fully licensed barbers and cosmetologists who meet Floyds 99's experience guidelines. Failure to comply with these standards and legal requirements can lead to penalties, fines, or even termination of the Franchise Agreement.