factual

Does the Floyds 99 Franchise Agreement allow for off-premises sales?

Floyds_99 Franchise · 2025 FDD

Answer from 2025 FDD Document

The Franchisee shall offer only services and products through its Barbershop which meet or exceed the minimum standards and specifications established by the Franchisor more fully described in the Operations Manual.

The Franchisee shall offer all types of services and products, including specific brands, as from time to time may be prescribed by the Franchisor and shall refrain from offering any other types of services or products, including specific brands, or operating or engaging in any other type of business or profession, from or through the FLOYD'S 99 Shop that are not authorized by the Franchisor, including, without limitation, filling "wholesale orders," defined below, or any off-premises, Internet, catalog or mail order sales, without the prior written consent of the Franchisor. "Wholesale Orders" are defined as those orders or sales where the principal purpose of the purchase is for resale, not use, or any sale other than those sold over the counter at a price other than that price charged to the general public; provided, however, that volume discounted sales made on the premises at the Franchised Location to a single purchaser, not for resale, shall not be considered a "wholesale order."

Source: Item 22 — CONTRACTS (FDD pages 57–58)

What This Means (2025 FDD)

According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees are generally restricted from engaging in off-premises sales unless they obtain prior written consent from the franchisor. Specifically, franchisees are prohibited from filling "wholesale orders" or conducting any off-premises, Internet, catalog, or mail-order sales without the franchisor's explicit approval.

"Wholesale Orders" are defined as sales where the primary purpose of the purchase is for resale rather than personal use, or any sale not made over the counter at the standard price charged to the general public. However, volume-discounted sales made on the premises of the franchised location to a single purchaser for their own use are not considered wholesale orders. This distinction allows for some flexibility in on-site sales while maintaining control over broader distribution channels.

This restriction ensures that Floyds 99 maintains control over its brand and distribution methods. A prospective franchisee should discuss with Floyds 99 the circumstances under which off-premises sales might be approved and what conditions would apply. Understanding these conditions is crucial for franchisees who may see opportunities for sales outside the traditional barbershop setting.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.