Must a Floyds 99 franchisee comply with the franchisor's standards and specifications?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee shall, at the Franchisee's expense and throughout the term of this Agreement, remain in compliance and strictly adhere to all of the Franchisor's current standards and specifications for the FLOYD'S 99 Shop as prescribed from time to time.
The Franchisee acknowledges that compliance with the Operations Manual is vitally important to the Franchisor and other FLOYD'S 99 system franchisees and is necessary to protect the reputation and goodwill of the Marks and to maintain a uniform quality of operation throughout the FLOYD'S 99 system.
However, while the Operations Manual is designed to protect the reputation and goodwill of the Marks, it is not designed to control the day-to-day operation of the FLOYD'S 99 Shop.
- 14.3 Inspections.
The Franchisor shall have the right to examine the Franchised Location, including the services offered and the manner in which those services are provided, inventory, products, equipment, furniture, fixtures, materials, supplies or services used or sold there, to ensure compliance with all standards and specifications set by the Franchisor.
The Franchisor shall conduct such inspections during regular business hours and the Franchisee may be present at such inspections.
The Franchisor, however, reserves the right to conduct the inspections without prior notice to the Franchisee.
- 14.4 Restrictions on Products and Services.
The Franchisee is prohibited from offering or selling any products or services not authorized by the Franchisor as being a part of the Licensed Methods.
If the Franchisee proposes to offer, conduct or utilize any products, services, materials, forms, items, supplies or services for use in connection with or sale through the FLOYD'S 99 Shop which are not previously approved by the Franchisor as meeting its specifications, the Franchisee shall first notify the Franchisor in writing requesting approval.
The Franchisor may, in its sole discretion, for any reason whatsoever, elect to withhold such approval; however, in order to make such determination, the Franchisor may require submission of specifications, information, or samples of such products, services, materials, forms, items or supplies.
The Franchisee shall pay and/or reimburse the Franchisor for the reasonable costs of investigation in determining whether such products, services, materials, forms, items or supplies meet the Franchisor's
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 44)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees must adhere to the franchisor's standards and specifications throughout the term of the agreement. This includes compliance with the Operations Manual, which contains the detailed standards and specifications that Floyds 99 franchisees must follow. These standards cover various aspects of the business, including products and services offered, the physical location, equipment, furniture, fixtures, hair care products, inventory policies, employee attire, supplies, forms, and advertising materials. Floyds 99 has the right to modify these standards and specifications, providing franchisees with 30 days' written notice before changes take effect.
Floyds 99 franchisees are responsible for purchasing equipment, inventory, and other products and services that meet the franchisor's standards. This extends to the point-of-sale (POS) system, computer hardware, software, and telecommunications equipment. Franchisees may be required to purchase certain items from Floyds 99, its affiliates, or designated suppliers. They must also use Floyds 99's designated credit card processing service and take security measures that comply with PCI Security Standards. If a data security breach occurs, the franchisee must notify Floyds 99 immediately and comply with all investigation and remediation efforts.
To ensure compliance, Floyds 99 has the right to inspect the franchised location, including services, inventory, products, equipment, and supplies. These inspections can occur during regular business hours, with or without prior notice to the franchisee. Franchisees are also required to obtain Floyds 99's approval for any advertising or marketing programs and are prohibited from offering or selling unauthorized products or services. If a franchisee wishes to use a new supplier, they must request approval from Floyds 99, which may require samples for testing before granting approval. Failure to comply with these standards can result in the franchisor taking corrective actions, such as purchasing necessary items on the franchisee's behalf, with the franchisee responsible for reimbursement.