What are the franchisee's obligations upon termination or non-renewal of a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| i. | Franchisee’s obligations on termination / nonrenewal | Section 20.4 | Pay outstanding amounts, de- identification of the Barbershop, return of confidential information, covenant not to compete (see also r. below). | r. | Non-competition covenants after the franchise is terminated or expires | Section 11.2 | No competing business for 2 years within 25 miles of your FLOYD’S 99 Shops or any other FLOYD’S 99 Shop. | i. | Franchisee’s obligations on termination / nonrenewal | Section 9.3 | Loss of development rights, cease use of Marks and confidential information except in connection with Barbershops currently operating; covenant not to compete.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchisee has specific obligations upon termination or non-renewal of the franchise agreement. These obligations are detailed in Section 20.4 of the Franchise Agreement and Section 9.3 of the Development Agreement.
Upon termination or non-renewal, a Floyds 99 franchisee must pay all outstanding amounts owed to the franchisor. Additionally, the franchisee is required to de-identify the barbershop, which means removing all Floyds 99 branding and signage from the location. The franchisee must also return any confidential information to Floyds 99.
Furthermore, the franchisee is subject to a covenant not to compete. This prevents the franchisee from engaging in a competing business for a specified period and within a certain geographic radius. Specifically, the franchisee cannot operate a competing business for 2 years within 25 miles of their former Floyds 99 shop or any other Floyds 99 location. For franchisees with a Development Agreement, termination or non-renewal results in the loss of development rights and the franchisee must cease using Floyds 99's marks and confidential information, except in connection with barbershops that are currently operating.