What information technology services are Floyds 99 franchisees required to purchase from designated or approved vendors?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
tiated. You will also purchase the signs for the exterior of your Barbershop from our designated sign vendors, including neon signs. We require that you purchase information technology services from our designated or approved vendors. Vector Security is currently our designated supplier for network as a service. You can purchase or lease the rest of your equipment, a back office computer, accounting software, credit card processing services, hair accessories and other inventory, supplies, printing services for marketing materials and in-shop signs, and services used, sold or leased through your FLOYD'S 99 Shop only from suppliers designated or approved by us in advance. You must only purchase, lease, sell or use equipment, computers, inventory, supplies and services meeting our standards and specifications. On or before your commencement of our initial training program, or during the lease negotiations phase for a second or subsequent Barbershops, we will make available to you a list of our designated and approved suppliers, the standards and specifications for items to be used, sold or leased by you through your FLOYD'S 99 Shop, as well as our criteria for approving a supplier. We reserve the right to require you to purchase certain items of specified furnishings, supplies, inventory or equipment directly from us or Holdings if we purchase such items in bulk.
We and our affiliates are not currently approved or designated suppliers of any items or services you are required to purchase for your Barbershop with the exception of Elevate, which provides information technology services, and Lefty's, which is a manufacturer of FLOYD'S 99 Proprietary Products. We reserve the right to require you to purchase some or all of the items or services used in your Barbershop from us or our affiliates upon 30 days' written notice to you.
Other than Lefty's and Elevate, we are not currently affiliated with any designated or approved suppliers. Three of our officers are also officers of Holdings and Lefty's, but none of our officers own an interest in Lefty's, a wholly owned subsidiary of Holdings. Three of our officers own an interest in Holdings, the parent of Lefty's. Three of our officers also own minority interests in Elevate. FFL, on behalf of itself and its affiliates, reserves the right to sell products, equipment, supplies and services to franchisees and to derive revenue from such sales. Lefty's currently manufactures Proprietary Items for sale in the Barbershops and Elevate currently provides information technology services to franchisees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–29)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees are required to purchase information technology services from designated or approved vendors. Vector Security is the current designated supplier for network as a service. Additionally, franchisees must use operations and accounting software or programs that meet Floyds 99's standards and specifications.
Floyds 99 also mandates the use of a specific Point of Sale (POS) system, including hardware, software (which includes proprietary customized software programs), and any software maintenance and update services. Franchisees will pay either Floyds 99 or the designated supplier directly for the POS system and related services. Floyds 99 retains the right to modify the standards for data security and may require franchisees to purchase hardware, software, maintenance, update, or monitoring services to comply with these standards, providing 30 days' notice.
Floyds 99 reserves the right to change the approved supplier for the POS system and any other software maintenance and update services. They can also require franchisees to purchase modifications and upgrades to the POS system from them or an approved supplier. Elevate is also mentioned as providing information technology services to franchisees. For the fiscal year ending December 31, 2024, Elevate's revenues from franchisee purchases were $131,040, representing 31% of Elevate's total revenue of $422,811.
These requirements ensure that all Floyds 99 locations operate with consistent and secure technology, which helps maintain brand standards and protect data. However, it also means franchisees have limited choice in IT vendors and must budget for these ongoing technology expenses. Prospective franchisees should inquire about the specific costs and requirements associated with these IT services to fully understand the financial implications.