What is the definition of 'Principal Managers' in the context of the Floyds 99 non-compete agreements?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee, if the Franchisee is an individual, or the principal owner of the Franchisee entity, or, if the Barbershop governed by this Agreement is not the first Barbershop developed by the Franchise or an affiliate, the individual designated by the Franchisee to assume primary responsibility for the overall management of the FLOYD'S 99 Shop (the "Principal Manager"), must attend the initial training program which is conducted by the Franchisor at one of the Franchisor's designated training facilities.
Successful completion of the initial training program by the Principal Manager is a prerequisite to perform the duties of the Principal Manager.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a 'Principal Manager' is defined in the context of training requirements and non-compete agreements. The FDD states that if the franchisee is an entity, the individual designated to assume primary responsibility for the overall management of the Floyds 99 shop is considered the Principal Manager. This individual must attend and successfully complete the initial training program.
This definition is relevant to the non-compete clauses within the franchise agreement. The non-compete agreements apply not only to the franchisee but also to their officers, directors, shareholders, and Principal Managers. During the term of the agreement and for a period of two years after termination or expiration, these individuals are restricted from having any direct or indirect interest in a Competitive Business within a specified radius of the franchised location or other Floyds 99 shops.
For a prospective Floyds 99 franchisee, this means that the person designated as the Principal Manager will be subject to the same non-compete restrictions as the franchisee themselves. This is a significant consideration when choosing who will fulfill the Principal Manager role, as it can impact their future employment or business opportunities. The Principal Manager must complete the initial training program, and their activities are restricted both during the franchise term and for two years post-termination to prevent competition with Floyds 99.