Did Floyds 99 derive revenue from the POS System in the 2024 fiscal year?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
You must acquire a point-of-sale system ("POS System") and certain customized software and related hardware that we specify and which you will use in every Barbershop from our designated vendors. You must also use our designated supplier to configure your POS System at your Barbershop before your Barbershop opens. Currently, the POS System is comprised of two personal computers which access a cloud-based POS System. We reserve the right to change the POS System specifications on 30 days' notice, requiring you to incorporate tablets or other mobile devices, upgrade or replace the POS System, or purchase or license other hardware and software (including proprietary software developed by us or our affiliates) at your expense. We may also change standards for data security and require you to purchase hardware, software, maintenance services, update services or monitoring services that comply with our standards on 30 days' notice. Each of our franchisees must also use operations and accounting software or programs with capabilities that meet our standards and specifications. We reserve the right to approve other suppliers of the POS System hardware, software (which includes our proprietary customized software programs), and any software maintenance and update services that we require now or in the future. You will either pay us or the designated supplier directly for the POS System and any related services. We reserve the right to change the approved supplier for the POS System and any other software maintenance and update services that we require now or in the future. We may derive revenue from your license of the POS System, but did not derive revenue from the POS System in the 2024 fiscal year. We can require you to purchase from us or from an approved supplier any modifications and upgrades to the POS System that may be developed in the future.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–29)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees must acquire a point-of-sale (POS) system from designated vendors, including specific software and hardware. Floyds 99 reserves the right to change the POS system specifications with 30 days' notice. The FDD specifies that franchisees will pay either Floyds 99 or the designated supplier directly for the POS system and any related services.
While Floyds 99 retains the right to derive revenue from the licensing of the POS system, the document explicitly states that Floyds 99 did not derive any revenue from the POS system during the 2024 fiscal year. However, Floyds 99 maintains the option to require franchisees to purchase modifications and upgrades to the POS system from them or an approved supplier in the future.
This arrangement means that while franchisees are obligated to use the specified POS system and its designated suppliers, Floyds 99 did not directly profit from the initial POS system fees in 2024. However, this could change in subsequent years, and franchisees should be prepared for potential future revenue generation by Floyds 99 through POS system licensing, modifications, or upgrades.