What happens if a Floyds 99 franchisee fails to maintain high governmental standards?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee shall provide the Franchisor with copies of all barbering and cosmetology licenses held by the Franchisee and each of its employees upon request.
Each of the Franchisee's employees shall provide only those services to clients that they are licensed to provide.
In addition, the Franchisee shall provide to the Franchisor immediately copies of all barbering and cosmetology board, health and sanitation department, fire department, building department, and other state or local entity or agency warnings, notices of deficiency or non-compliance, reports of inspections and other documents indicating that the Franchisee has not met or maintained the highest governmental standards as and when such reports, notices and documents become available.
The Franchisee shall be solely responsible for any penalties or fines assessed for failure to abide by such laws and regulations.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees must provide copies of barbering and cosmetology licenses for themselves and their employees upon request. Employees can only provide services they are licensed to perform. Franchisees must also immediately provide copies of any warnings, notices of deficiency or non-compliance, inspection reports, or other documents from regulatory bodies (such as barbering and cosmetology boards, health and sanitation departments, fire departments, and building departments) that indicate a failure to meet or maintain governmental standards. The franchisee is solely responsible for any penalties or fines assessed for failing to abide by such laws and regulations.
Floyds 99 emphasizes the importance of maintaining standards and specifications, with compliance being vital to protect the brand's reputation and ensure consistent quality across the franchise system. The franchisor has the right to inspect the franchised location to ensure compliance with these standards. If a franchisee fails to maintain the standards and specifications established by Floyds 99, or outlined in the Operations Manual, it is considered a breach of the Franchise Agreement.
If a Floyds 99 franchisee fails to maintain the required standards, the franchisor can issue a written notice, giving the franchisee 30 days to correct the issue. Failure to cure the default within this period can result in termination of the Franchise Agreement. Furthermore, if the franchisor determines that the Floyds 99 shop is not being managed properly or if a default occurs, the franchisor has the right to appoint an interim Principal Manager to operate the shop, charging a reasonable management fee in addition to other fees. This action is intended to prevent interruption of the business and protect the Floyds 99 system's value.