Does Floyds 99 have independent access to all data related to the Barbershop?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
17. REPORTS, RECORDS AND FINANCIAL STATEMENTS
- 17.1 Franchisee Reports. The Franchisee shall establish and maintain, at its own expense, bookkeeping, accounting and data processing systems which conform to the specifications that the Franchisor may prescribe from time to time. Each transaction of the Barbershop shall be processed in the manner prescribed by the Franchisor. The Franchisor shall have the right of independent access to all data with respect to the Barbershop. The Franchisor reserves the right to require the Franchisee to provide the Franchisor with access to the Franchisee's data by installing a modem or joining and paying for an electronic network connection service which meets the Franchisor's standards and specifications. The Franchisee shall supply to the Franchisor such types of reports in a manner and form as the Franchisor may from time to time reasonably require, including:
- a. by a designated day of each week a report on the Barbershop's Gross Sales for the previous week;
- b. monthly financial statements, prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), consistently applied, using the forms and chart of accounts as prescribed by the Franchisor, which shall include a profit and loss statement and balance sheet for the FLOYD'S 99 Shop or for the Franchisee entity, mailed or otherwise forwarded to the Franchisor by no later than the 15th day following the end of the
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 has the right of independent access to all data related to the Barbershop. To facilitate this access, Floyds 99 can require franchisees to install a modem or join and pay for an electronic network connection service that meets Floyds 99's standards.
Floyds 99 also requires franchisees to establish and maintain bookkeeping, accounting, and data processing systems that conform to Floyds 99's specifications. All transactions of the Barbershop must be processed in the manner Floyds 99 prescribes. Franchisees must also supply reports in the manner and form that Floyds 99 reasonably requires, including weekly gross sales reports and monthly financial statements.
These stipulations ensure that Floyds 99 can monitor the financial performance and operational activities of each franchise location. This level of access is typical in franchising, allowing the franchisor to maintain brand consistency, ensure compliance with standards, and provide support to franchisees. However, franchisees should be aware of the costs associated with setting up and maintaining these systems and providing the required data access.