What is the definition of 'Goodwill' as it relates to the Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. The Company and its affiliates have established substantial goodwill and an excellent reputation with respect to the quality of services and products available, which goodwill and reputation have been and will continue to be of major benefit to the Company;
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, 'goodwill' refers to the substantial goodwill and excellent reputation that Floyds 99 and its affiliates have established. This reputation is based on the quality of services and products offered. The FDD states that this goodwill and reputation greatly benefit Floyds 99.
For a prospective franchisee, this means that the existing brand recognition and positive image of Floyds 99 can be a significant advantage when starting a new barbershop. Customers may be more inclined to visit a Floyds 99 location due to the established reputation for quality.
However, it also implies that franchisees are expected to maintain and enhance this goodwill through consistent service quality and adherence to Floyds 99's standards. Failure to do so could negatively impact the brand's reputation and, consequently, the franchisee's business. The franchisee's association with Floyds 99 is contingent on upholding the standards that contribute to this goodwill.