In the context of the Floyds 99 lease addendum, what does the term 'Franchise Agreement' refer to?

According to the 2025 Floyds 99 Franchise Disclosure Document, the term "Franchise Agreement" as used in the context of the lease addendum, refers to both the initial franchise agreement executed with the developer for their first barbershop and any subsequent franchise agreements executed for additional Floyds 99 shops developed under the development agreement. The franchise agreement governs the operation of each individual Floyds 99 shop.

Floyds 99 requires a separate Franchise Agreement for each shop developed under the Development Agreement. These subsequent agreements are to be executed within 10 days after Floyds 99 approves the location for each new barbershop. The franchisor retains the right to modify the Franchise Agreement for subsequent locations to align with the current agreement offered to new franchisees.

However, Floyds 99 assures developers that the initial franchise fee will not exceed the amount specified in the original agreement, and the royalty percentage will remain consistent with the initial Franchise Agreement. Despite these assurances, Floyds 99 maintains the right to charge then-current rates for advertising contributions and optional products and services. This definition ensures that the lease terms are consistent with the franchisee's obligations under their specific Franchise Agreement for that location, as well as any broader obligations under the Development Agreement.