Does a Floyds 99 franchisee acquire any right, title, or interest in the Licensed Methods?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee acknowledges that it has not acquired any right, title or interest in the Licensed Methods except for the right to use the Licensed Methods in the operation of the FLOYD'S 99 Shop as it is governed by this Agreement and that it is obligated to maintain the confidentiality of the Licensed Methods in accordance with Section 22.3 below.
- 15.4 Mark Infringement.
The Franchisee shall notify the Franchisor in writing of any possible infringement or illegal use by others of a trademark the same as or confusingly similar to the Marks or of any copyrighted work of the Franchisor which may come to its attention.
The Franchisee acknowledges that the Franchisor shall have the right, in its sole discretion, to determine whether any action will be taken on account of any possible infringement or illegal use.
The Franchisor may commence or prosecute such action in the Franchisor's own name, the name of Floyd's 99 Holdings, LLC and may join the Franchisee as a party to the action if the Franchisor determines it to be reasonably necessary for the continued protection and quality control of the Marks, Licensed Methods and copyrighted works.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a franchisee does not acquire any right, title, or interest in the Licensed Methods, except for the right to use them in the operation of their Floyds 99 shop, as governed by the franchise agreement. The franchisee is obligated to maintain the confidentiality of the Licensed Methods. The Licensed Methods encompass the distinctive plan for establishing, operating, and promoting a Floyds 99 shop, including standards and specifications for the franchised site, premises, leasehold improvements, interior finish, interior décor, furnishings, equipment, products, product formulas, supplies, materials, inventory type and control, technical equipment standards, order fulfillment methods, client relations, marketing techniques, written promotional materials, advertising, accounting systems, and service delivery methods. These Licensed Methods constitute confidential trade secrets of Floyds 99.
This means that while franchisees are granted the right to use Floyds 99's established business methods to operate their barbershop, they do not own these methods. Floyds 99 retains full ownership and control over the Licensed Methods, and can modify them over time. The franchisee's rights are limited to using these methods within the scope of their franchised business and in accordance with the franchise agreement.
This arrangement is typical in franchising, where the franchisor licenses its intellectual property and business systems to franchisees. It allows Floyds 99 to maintain consistency and quality across all franchised locations, while also protecting its proprietary information. Prospective franchisees should understand that they are essentially renting the right to use these methods and must adhere to Floyds 99's standards and guidelines.