Can a Floyds 99 franchisee operate another business at the Franchised Location?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
n described in Section 3.1 of this Agreement. The Franchisee agrees to use the Marks and Licensed Methods, as they may be changed, improved, and further developed by the Franchisor from time to time, only in accordance with the terms and conditions of this Agreement.
- 2.2 Scope of Franchise Operations. The Franchisee shall at all times comply with the Franchisee's obligations hereunder and shall continuously use best efforts to promote and operate the FLOYD'S 99 Shop. The Franchisee shall not engage in any business other than the operation of the Barbershop. The Franchisee shall utilize the Marks and Licensed Methods to operate all aspects of the business franchised hereunder in accordance with the methods and systems developed and prescribed from time to time by the Franchisor, all of which are a part of the Licensed Methods. The Franchisee's FLOYD'S 99 Shop shall offer all services and products as the Franchisor shall designate. The Franchisee shall be restricted from offering or selling any services or products not previously approved by the Franchisor in writing and shall further be restricted from offering the authorized services or distributing the authorized products for nonretail or off-site sale except as permitted by the Franchisor in writing.
3. FRANCHISED LOCATION AND TERRITORIAL RIGHTS
3.1 Franchised Location. The Franchisee is granted the right and franchise to own and operate a FLOYD'S 99 Shop at the address and location which shall be set forth in Exhibit I, attached hereto ("Franchised Location").
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees are not allowed to engage in any business other than the operation of the barbershop at the franchised location. This means a franchisee must dedicate their efforts solely to the Floyds 99 business.
This restriction ensures that the franchisee focuses entirely on developing and maintaining the Floyds 99 business according to the franchisor's standards. It prevents the dilution of effort and resources that might occur if the franchisee were to operate other ventures simultaneously at the same location. The franchisee is also restricted from offering or selling any services or products not previously approved by Floyds 99 in writing.
Furthermore, the franchisee cannot operate another business or offer Floyds 99's services or products at any location other than the franchised location, unless it's another Floyds 99 franchise covered by a separate agreement. This includes restrictions on wholesale orders, mail order sales, internet sales, or any other type of off-site service or sale, ensuring that all sales and services are conducted through the approved Floyds 99 shop, maintaining quality control and brand consistency.