Does the Floyds 99 Franchise Agreement provide any assistance to the Franchisee in ensuring compliance with applicable laws?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee shall conduct itself and operate its FLOYD'S 99 Shop in compliance with all applicable federal, state and local laws, regulations and other ordinances, including, without limitation, barbering and cosmetology regulations, health and public safety orders and regulations, barbering and cosmetology licensing laws, music licensing laws, data security laws, privacy laws, and other orders, ordinances and regulations in such a manner so as to promote a good public image in the business community.
In connection therewith, the Franchisee will be solely and fully responsible for obtaining any and all licenses to carry on business at the FLOYD'S 99 Shop.
The Franchisee shall provide the Franchisor with copies of all barbering and cosmetology licenses held by the Franchisee and each of its employees upon request.
Each of the Franchisee's employees shall provide only those services to clients that they are licensed to provide.
In addition, the Franchisee shall provide to the Franchisor immediately copies of all barbering and cosmetology board, health and sanitation department, fire department, building department, and other state or local entity or agency warnings, notices of deficiency or non-compliance, reports of inspections and other documents indicating that the Franchisee has not met or maintained the highest governmental standards as and when such reports, notices and documents become available.
The Franchisee shall be solely responsible for any penalties or fines assessed for failure to abide by such laws and regulations.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchisee is primarily responsible for ensuring compliance with all applicable laws and regulations. While Floyds 99 does not explicitly guarantee assistance in this area within the Franchise Agreement, it does outline several operational covenants and standards that franchisees must adhere to, which indirectly contribute to compliance.
The franchisee is obligated to operate their Floyds 99 shop in compliance with all federal, state, and local laws, including barbering and cosmetology regulations, health and public safety orders, licensing laws, music licensing laws, data security laws, and privacy laws. The franchisee is solely responsible for obtaining all necessary licenses to operate the shop and must provide copies of barbering and cosmetology licenses for all employees upon request. Furthermore, the franchisee must immediately provide Floyds 99 with copies of any warnings, notices of deficiency, or non-compliance reports from regulatory bodies.
Floyds 99 has the right to inspect the franchised location to ensure compliance with the standards and specifications set by the company. These inspections can occur during regular business hours, with or without prior notice to the franchisee. The Operations Manual, while not designed to control day-to-day operations, is designed to protect the reputation and goodwill of the Floyds 99 brand, and compliance with it is vitally important. The franchisee is responsible for ensuring that their employees comply with all operational standards and laws affecting barbershop operations through proper training.
While Floyds 99 offers initial and ongoing support in various aspects of the business, such as site selection, training, and access to advertising materials, the onus is on the franchisee to maintain legal and regulatory compliance. A prospective franchisee should clarify with Floyds 99 the extent of support offered in understanding and adhering to local regulations, and consider seeking independent legal counsel to ensure full compliance.