Following termination of a Floyds 99 Development Agreement, can the franchisee continue to use the Marks and confidential information?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| Agreement or other agreements, notice of termination of Franchise Agreement delivered to Developer by Franchisor or Developer terminates a Franchise Agreement without cause. | |||
| i. | Franchisee's obligations on termination / nonrenewal | Section 9.3 | Loss of development rights, cease use of Marks and confidential information except in connection with Barbershops currently operating; covenant not to compete. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, a franchisee's ability to use the brand's Marks and confidential information after termination of the Development Agreement is limited. Specifically, upon termination or non-renewal of the Development Agreement, the franchisee must cease using the Marks and confidential information, except when it is connected to Barbershops that are currently operating.
This means that while a Development Agreement is terminated, franchisees can continue using Floyds 99's Marks and confidential information only for the locations that are still running. However, the development rights are lost, preventing the franchisee from opening new Floyds 99 locations using the brand's identity or proprietary information.
This condition is important for prospective franchisees to consider, as it directly impacts their ability to expand their Floyds 99 business after the Development Agreement ends. Additionally, a franchisee is subject to a covenant not to compete, further restricting their business activities post-termination.