Is a Floyds 99 franchise granted as an exclusive territory?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
forth in Exhibit I. In such circumstances, the Franchisee shall select and propose to the Franchisor for the Franchisor's prior approval a specific location for the Franchised Location which, once approved by the Franchisor, shall then be described in the rider to Exhibit I.
- 3.2 Protected Territory. Subject to the Franchisor's reservation of rights described in Section 3.4 below, the Franchisor shall not establish and operate, or franchise another person or entity to establish and operate, a FLOYD'S 99 Shop within the geographic area described in Exhibit I, attached hereto (the "Protected Territory"). Once Franchisor has defined the Protected Territory, Franchisee will have no further territorial or other rights in those portions of the Designated Area that are located outside of the Protected Territory.
- 3.3 Limitation on Franchise Rights; Relocation. The rights that are granted to the Franchisee are for the specific Franchised Location and cannot be transferred to an alternative Franchised Location, or any other location, without the prior written approval of the Franchisor, which approval shall not be unreasonably withheld. The Franchisee shall not operate another business, offer services or products which are part of the Licensed Methods at any site other than the Franchised Location (except for other Franchised Locations covered by other Franchise Agreements with the Franchisee), fill wholesale orders, sell products or services by mail order or through catalogs or the Internet, transship or reship products, or offer any other type of off-site service or sale of products. If Franchisee desires to relocate the FLOYD'S 99 Shop or is unable to continue the operation of the FLOYD'S 99 Shop at the Franchised Location because of damage to or destruction of the FLOYD'S 99 Shop, then Franchisee may request Franchisor's approval to relocate the FLOYD'S 99 Shop to another location in the Protected Territory, which approval shall not be unreasonably withheld. If Franchisor grants Franchisee the right to relocate the FLOYD'S 99 Shop, then Franchisee shall comply with the site selection and construction procedures set forth in Article 5 and pay Franchisor the then-current relocation fee.
- 3.4 Franchisor's Reservation of Rights. 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.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees are granted a protected territory, but the rights are non-exclusive. The franchisee is granted the right to operate a Floyds 99 shop at a specific location, as defined in Exhibit I of the franchise agreement. This location is within a designated area, also outlined in Exhibit I. Once a location is approved by Floyds 99, it becomes the "Franchised Location."
Floyds 99 will not establish or franchise another entity to operate a shop within the franchisee's Protected Territory, which is a defined geographic area described in Exhibit I. However, the franchisor retains certain rights, including the right to use and license others to use the Floyds 99 marks and methods outside the Protected Territory. Floyds 99 also reserves the right to use the marks for alternative channels of distribution, such as internet marketing, wholesale distribution, and mail order, regardless of whether it's within the Protected Territory.
Furthermore, Floyds 99 retains 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 to develop a barbershop within a Captive Audience Facility inside the franchisee's territory, they will notify the franchisee of the opportunity.
This means that while Floyds 99 franchisees are given a Protected Territory, it is subject to several exceptions that could allow Floyds 99 to operate or license others to operate nearby. A prospective franchisee should carefully review Exhibit I and Section 3.4 of the franchise agreement to fully understand the scope and limitations of the Protected Territory and the potential for competition from the franchisor or other channels.