What is the definition of 'Proprietary Marks' as it relates to the Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- a) Franchisor has developed methods for establishing and operating retail hair care businesses ("FLOYD'S 99 Shops" or "Barbershops") which use the service mark "FLOYD'S 99" and related service marks, trade names and trademarks ("Marks") and Franchisor's proprietary methods of doing business ("Licensed Methods"). Terms not otherwise defined in this Agreement shall have the meanings as defined in the Franchise Agreement.
- (b) Marks and Confidential Information. Except in connection with Barbershops Developer is then operating under effective Franchise Agreements with Franchisor, or with respect to which a Franchise Agreement has been signed prior to the date of expiration or termination of this Agreement, Developer agrees to immediately and permanently cease to use, by advertising or in any manner whatsoever, the Marks and Confidential Information; slogans, trademarks, trade names, service marks, designs, trade dress or logos which are similar in nature to the Marks; or any equipment, materials, forms, confidential methods, procedures, recipes and techniques associated with or similar to the FLOYD'S 99 system or which display the Marks or any other distinctive forms, slogans, signs, symbols, trade dress or devices associated with or belonging to Franchisor or its affiliates.
- A. The Company has developed methods for establishing and operating franchises for the operation of retail hair care businesses ("FLOYD'S 99 Shops" or "Barbershops") which use the service mark "FLOYD'S 99" and related service marks, trade names and trademarks ("Marks"); Developer and Franchisor acknowledge that the distinctive business format, plans, methods, data, processes, marketing systems, manuals, product formulas, techniques, designs, layouts, operating procedures, trademarks, proprietary marks and information and know-how of Franchisor which are developed and utilized in connection with the Licensed Methods are proprietary and confidential ("Confidential Information").
Such Confidential Information is unique, exclusive property and a trade secret of Franchisor and has valuable goodwill associated with it.
Developer acknowledges that any unauthorized disclosure or use of the Confidential Information would be wrongful and would cause irreparable injury and harm to Franchisor.
It is understood that Confidential Information is deemed to include, without limitation, clients lists, vendor lists, product formulas, any and all information contained in the Operations Manual (as described in the Franchise Agreement), and any information of whatever nature which gives Franchisor and its affiliates an opportunity to obtain an advantage over its competitors who do not have access to, know or use such lists, written materials, formulas or information.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the term "Marks" refers to the service mark "FLOYD'S 99" and related service marks, trade names, and trademarks used by Floyds 99. These marks are integral to the operation of Floyds 99 Barbershops, and the franchisor grants developers the right to use these marks in connection with their barbershops. Floyds 99 has developed methods for establishing and operating retail hair care businesses, known as FLOYD'S 99 Shops or Barbershops, which rely on these marks.
Upon termination or expiration of the franchise agreement, the developer must immediately and permanently cease using the Marks, including any similar slogans, trademarks, trade names, service marks, designs, trade dress, or logos. This restriction applies to advertising and all other uses. The developer must also stop using any equipment, materials, forms, confidential methods, procedures, recipes, and techniques associated with the Floyds 99 system that display the Marks or any other distinctive forms, slogans, signs, symbols, trade dress, or devices belonging to Floyds 99 or its affiliates.
Floyds 99 also considers its distinctive business format, plans, methods, data, processes, marketing systems, manuals, product formulas, techniques, designs, layouts, operating procedures, trademarks, proprietary marks, information, and know-how as proprietary and confidential, referred to as Confidential Information. This Confidential Information is considered a trade secret and exclusive property of Floyds 99, with substantial goodwill associated with it. Unauthorized disclosure or use of this information would cause significant harm to Floyds 99. This includes client lists, vendor lists, product formulas, and any information in the Operations Manual that provides Floyds 99 an advantage over competitors.