Does the Floyds 99 franchisee have any territorial rights outside of the Protected Territory?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
rvation 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. 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.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a franchisee's territorial rights are limited to the Protected Territory. Once Floyds 99 has defined the Protected Territory, the franchisee will not have any further territorial rights in those portions of the Designated Area that are located outside of the Protected Territory. The rights granted to the franchisee are for the specific Franchised Location and cannot be transferred to an alternative Franchised Location, or any other location, without prior written approval from Floyds 99.
Floyds 99 retains the right to use and license others to use the Marks and Licensed Methods in connection with the operation of Floyds 99 Shops at any location except within the Protected Territory. They also retain the right 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 Floyds 99 Shops, at any location, whether within or outside of the Protected Territory.
Floyds 99 and its affiliates reserve the right to contract with Captive Audience Facilities to develop and operate Barbershops within these facilities. If the contract includes such a location within the franchisee's Protected Territory, Floyds 99 will notify the franchisee of the opportunity to develop and operate the proposed Barbershop within the Captive Audience Facility, on the terms and conditions negotiated by Floyds 99 in the contract. If the franchisee elects not to develop the proposed Barbershop, Floyds 99, one of its affiliates, or another franchisee may be granted the right to develop the proposed Barbershop, and the franchisee agrees that in such case, the franchisee will not have any further rights to the proposed Barbershop or the location of the proposed Barbershop during the term of the contract between Floyds 99 and the Captive Audience Facility.