Is a Floyds 99 franchise granted as an exclusive right?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee acknowledges that its franchise rights as granted are non-exclusive and that the Franchisor, for itself and its successors and affiliates, retains the rights, among others:
a. to use, and to license others to use, the Marks and Licensed Methods in connection with the operation of FLOYD'S 99 Shops, at any location except within the Protected Territory;
b. to use the Marks to identify any type of services and products, promotional and marketing efforts or related items, and to identify products and services distributed or otherwise made available through alternative channels of distribution other than through FLOYD'S 99 Shops, at any location, whether within or outside of the Protected Territory, including but not limited to, at temporary events and venues or by way of wholesale distribution, Internet marketing or distribution, by mail order, catalog sales, social media marketing, telemarketing, other direct marketing or retail store product display;
c. to use and license others to use the Marks and Licensed Methods within or outside the Protected Territory in connection with the operation of Barbershops within "Captive Audience Facilities" which are defined as facilities where people are congregating for a primary purpose unrelated to the Barbershop business, creating significant foot traffic in the facility, including airports and other transportation hubs, hospitals, college campuses, convention centers, grocery stores, department stores, resorts and hotels and within office buildings, but not including lifestyle centers, town centers, "big box" retail centers and regional shopping malls.
The Franchisor and its affiliates reserve the right to contract with Captive Audience Facilities to develop and operate Barbershops within these facilities and, if the contract includes such a location within the Franchisee's Protected Territory, the Franchisor will notify the Franchisee of the opportunity to
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchise rights granted are non-exclusive. While franchisees are granted a protected territory, Floyds 99 retains several rights within and outside this territory. This means that while Floyds 99 will not establish another franchised location within the franchisee's protected territory, they do reserve certain rights.
Floyds 99 reserves the right to use and license others to use their marks and licensed methods outside the protected territory. They can also use the marks to identify any type of services and products through alternative channels of distribution, such as internet marketing, wholesale distribution, or mail order, regardless of whether it's within or outside the protected territory. This could impact a franchisee's potential customer base and revenue streams.
Furthermore, Floyds 99 reserves the right to operate barbershops within "Captive Audience Facilities" like airports, hospitals, and college campuses, even within a franchisee's protected territory. If Floyds 99 contracts with such a facility within a franchisee's territory, they will offer the franchisee the opportunity to develop and operate the barbershop under the negotiated terms. However, if the franchisee declines, Floyds 99 can grant the right to another party, and the original franchisee will have no further rights to that location. This highlights a potential risk where the franchisor can establish competing locations within what would otherwise be considered the franchisee's exclusive area.
These reservations of rights are common in franchising, allowing franchisors to explore various market channels and opportunities. However, prospective Floyds 99 franchisees should carefully consider these non-exclusive aspects and how they might affect their business operations and profitability within their protected territory. Understanding the specific boundaries of the protected territory and the potential for Floyds 99 to operate or license others within that area is crucial for making an informed investment decision.