What is the franchisee's obligation regarding compliance with the terms of the contract negotiated by Floyds 99 for a Captive Audience Facility?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates reserve the right under the Franchise Agreement and Development Agreement to contract with Captive Audience Facilities to develop and operate Barbershops within the facilities and, if the contract includes such a location within your Protected Territory or Development Area, as the case may be, we will contact you and give you the opportunity to develop and operate the Barbershop within the Captive Audience Facility, on terms and conditions agreed to by us in the contract. You must respond within fifteen (15) days of being notified of any opportunity at a Captive Audience Facility whether you want to develop the location and you must comply with the terms of the contract we have negotiated. If you elect not to do so, we or one of our affiliates or another franchisee will have the right to develop the location and you will have no further rights pertaining to the location during the term of the contract. As of the date of this Disclosure Document, we do not have any Captive Audience Facilities under contract and we cannot guaranty that we will have any in the future in your Protected Territory or Development Area;
Source: Item 12 — TERRITORY (FDD pages 38–41)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, if a Captive Audience Facility opportunity arises within a franchisee's protected territory or development area, Floyds 99 will offer the franchisee the chance to develop and operate a barbershop there. Captive Audience Facilities are defined as locations like airports, hospitals, college campuses, and other high-traffic areas where people gather for reasons other than visiting a barbershop.
If the franchisee chooses to pursue the opportunity, they must comply with the terms and conditions that Floyds 99 has already negotiated in the contract for that specific Captive Audience Facility. The franchisee has a limited time frame of fifteen days from notification to decide whether to develop the location.
If the franchisee declines the opportunity, Floyds 99 or another franchisee can develop the location, and the original franchisee loses all rights to that location during the contract term. Floyds 99 does not guarantee the availability of Captive Audience Facilities in a franchisee's territory or development area. This clause ensures that Floyds 99 can capitalize on opportunities in unique, high-traffic locations while giving existing franchisees the first option, subject to their compliance with pre-negotiated terms.