Can Floyds 99 disclose financial data from franchisees to other franchisees?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor reserves the right to disclose data derived from all financial and accounting reports received from the Franchisee to the other franchisees and affiliates in the FLOYD'S 99 system with information identifying the Franchisee.
The Franchisor also reserves the right to disclose data derived from the Franchisee's financial and accounting reports to parties outside of the FLOYD'S 99 system, without identifying the Franchisee, except to the extent identification of the Franchisee is required by law.
The Franchisee consents to the Franchisor obtaining financial and account information regarding the Barbershop and its operations from third parties with whom the Franchisee does business, as and when deemed necessary by the Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, Floyds 99 reserves the right to share franchisees' financial data with other franchisees in the system. Specifically, Floyds 99 can disclose data derived from financial and accounting reports received from a franchisee to other franchisees and affiliates within the Floyds 99 system. Importantly, this disclosure can include information that identifies the specific franchisee.
This practice is relatively common in franchising, as it allows franchisees to benchmark their performance against others in the system. However, prospective franchisees should consider the implications of having their financial data shared, even if it's intended to be used for comparative purposes. It is crucial to understand what specific financial data will be shared and how Floyds 99 ensures the confidentiality and security of this information.
Furthermore, Floyds 99 also reserves the right to disclose this financial data to parties outside the Floyds 99 system, but in this case, the franchisee will not be identified unless required by law. This is a standard practice to protect the franchisee's privacy while still allowing Floyds 99 to use aggregated data for analytical or business purposes. Franchisees also consent to Floyds 99 obtaining financial information about their barbershop from third parties with whom they do business, as deemed necessary by Floyds 99.