factual

Are Floyds 99 franchisees restricted by confidentiality clauses from openly discussing their experiences with Floyd's Franchising, LLC?

Floyds_99 Franchise · 2025 FDD

Answer from 2025 FDD Document

During the last three fiscal years, franchisees have signed confidentiality clauses. In some instances, current and former franchisees sign provisions restricting their ability to speak openly about their experience with Floyd's Franchising, LLC. You may wish to speak with current and former franchisees, but be aware that not all franchisees will be able to communicate with you.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 53–57)

What This Means (2025 FDD)

According to Floyds 99's 2025 Franchise Disclosure Document, some franchisees are subject to confidentiality clauses that may restrict their ability to openly discuss their experiences with Floyd's Franchising, LLC. The FDD states that during the last three fiscal years, franchisees have signed confidentiality clauses. These provisions, signed by both current and former franchisees in some instances, limit their ability to speak freely about their experiences with the company.

This has significant implications for prospective franchisees. While the FDD includes a list of current and former franchisees, potential buyers should be aware that not all of them will be able to communicate openly about their experiences. This could make it more difficult to get a comprehensive and unbiased view of the franchise system. It is common practice in the franchise industry for franchisors to include confidentiality clauses in their agreements to protect trade secrets and maintain brand reputation, but the extent to which these clauses are enforced can vary.

Given this information, it is crucial for potential Floyds 99 franchisees to carefully consider the implications of these confidentiality clauses. While speaking with current and former franchisees is a valuable part of the due diligence process, the presence of these clauses means that some franchisees may be limited in what they can share. Prospective franchisees should factor this into their research and consider asking Floyds 99 about the scope and enforcement of these clauses to better understand the potential limitations on franchisee communication.

Prospective franchisees should carefully review the franchise agreement and any related documents to fully understand the scope of these confidentiality provisions and how they might impact their ability to discuss their experiences with others.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.