What is Floyds 99's definition of a 'Card Program'?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to require you to participate in, and to purchase and utilize processing equipment and software designated by us to implement a prepaid card, gift card, rewards card or customer loyalty program (each, a "Card Program"). As of the date of this Disclosure Document, we have implemented a gift card program that you must participate in. The fees which are currently associated with the operation of the Card Program are paid by the National Marketing Fund. You must follow the guidelines set forth in the Operations Manual with respect to your obligations and responsibilities under a Card Program, the methods of operation for a Card Program, the transaction information you are required to provide to us and the retention of complete and accurate books and records regarding transactions made pursuant to a Card Program. To comply with applicable state laws and regulations, the funds you receive in connection with the sale, activation and reloading of prepaid cards, gift cards, rewards cards or similar promotional cards, and the subsequent transactions which are made by the holders of such cards will be accounted for separately from other sales made at your Barbershop. We reserve the right to collect the funds you receive in connection with the sale and activation and reloading of prepaid cards, gift cards, rewards cards or similar promotional cards for reconciliation of the cardholder revenue and debited cardholder sales. You are responsible for compliance with all federal and state laws that may regulate gift and stored value cards, including any unclaimed property and cash refund laws in your state. We may charge you transaction fees to activate, reload, redeem and otherwise administer a Card Program. You may be required to sign an addendum to your Franchise Agreement as a condition of participation in a Card Program. Additionally, we have the right to audit your books, records and processes relating to a Card Program. You may be required to pay the costs of an audit if the audit reflects an underpayment of more than 5% during the period reviewed.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–29)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a 'Card Program' is defined as a prepaid card, gift card, rewards card, or customer loyalty program. Floyds 99 reserves the right to mandate franchisee participation in these programs, including the purchase and use of designated processing equipment and software. As of the FDD's publication date, a gift card program is already in place, and franchisee participation is mandatory. The fees associated with this existing card program are currently covered by the National Marketing Fund.
Franchisees are obligated to adhere to the guidelines outlined in the Operations Manual regarding their responsibilities within a Card Program. This includes operational methods, transaction information reporting, and the maintenance of accurate records. To comply with state regulations, funds from card sales, activations, reloads, and subsequent transactions must be accounted for separately from other barbershop sales. Floyds 99 retains the right to collect these funds for reconciliation purposes.
Franchisees are responsible for complying with all federal and state laws governing gift and stored value cards, including unclaimed property and cash refund laws. Floyds 99 may impose transaction fees for various card-related activities, such as activation, reloading, and redemption. Participation in a Card Program may also require franchisees to sign an addendum to their Franchise Agreement. Furthermore, Floyds 99 has the right to audit franchisee records related to Card Programs, with the franchisee potentially liable for audit costs if underpayments exceeding 5% are discovered.