What is the franchisee's responsibility regarding penalties or fines assessed for failure to abide by laws and regulations at a Floyds 99 shop?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee shall be solely responsible for any penalties or fines assessed for failure to abide by such laws and regulations.
- c.
Management.
The Franchisee acknowledges that proper management of the FLOYD'S 99 Shop is important and shall insure that one of the principal owners of the Franchisee entity and, if applicable, the designated Principal Manager who has completed the Franchisor's initial training program, are responsible for the management of the FLOYD'S 99 Shop at all times.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchisee is solely responsible for any penalties or fines assessed for failure to comply with applicable laws and regulations. This includes all federal, state, and local laws, regulations, and ordinances. These laws include, but are not limited to, barbering and cosmetology regulations, health and public safety orders and regulations, barbering and cosmetology licensing laws, music licensing laws, data security laws, and privacy laws.
This means that if a Floyds 99 shop fails to adhere to these regulations and incurs penalties or fines, the franchisee, not the franchisor, is obligated to pay those costs. This responsibility extends to obtaining all necessary licenses to operate the barbershop. The franchisee must also provide copies of all barbering and cosmetology licenses held by the franchisee and their employees to the franchisor upon request.
This aspect of the franchise agreement highlights the importance of due diligence and ongoing compliance. A prospective Floyds 99 franchisee should carefully research all applicable laws and regulations in their area and implement systems to ensure continuous compliance. Failure to do so could result in unexpected financial burdens in the form of penalties and fines, directly impacting the profitability of the franchise. Floyds 99 also requires that the franchisee provide copies of any warnings, notices of deficiency or non-compliance, reports of inspections, or other documents indicating that the franchisee has not met governmental standards.