What mandatory standards and specifications does Floyds 99 provide to franchisees?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
stimate) or 10 (high estimate) Barbershops.
ITEM 8. RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Operations.
Your FLOYD'S 99 Shop must be established and operated in compliance with your Franchise Agreement. It is mandatory that you comply with the standards and specifications contained in an operations manual we provide to you, in the form of one or more manuals, technical bulletins, electronically transmitted messages, or other written materials sent electronically (referred to collectively in this Disclosure Document as "Operations Manual"), which we may modify. The Operations Manual is designed to protect the Licensed Methods and the Marks and is not intended to control the day-to-day operation of your Barbershop. We provide you with our mandatory standards and specifications for the hair cutting, coloring and barber specialty techniques and related scheduling and pricing strategies, client relations, employee training, marketing and advertising, hair care products and related products and services offered at or through your Barbershop and for the Franchised Location, décor, equipment, furniture, fixtures, supplies, forms, advertising material, and other items used at your Barbershop. Although we provide you with the standards and specifications described above, these standards and specifications are provided for the protection of the FLOYD'S 99 brand and the Licensed Methods. You are solely responsible for all employment decisions at your Barbershop, including decisions related to hiring, training, firing, scheduling, compensation, benefits, discipline, supervision and the day-to-day operation of your Shop.
Barbershop Build-Out and Lease.
You must, at your expense, construct, convert, design and decorate the Barbershop location in accordance with our plans and specifications. We will provide you with design plans and specifications for your Barbershop and you will then be required to provide us with construction plans prepared by a contractor or architect we approve. We require that you obtain our written consent to any proposed Franchised Location and any proposed improvements to the Franchised Location before construction begins.
We must approve any lease, including all lease amendments, or, if applicable, any purchase agreement for your Barbershop before you execute any of these agreements. Then, a copy of the signed lease is to be delivered to us within 15 days after signing. You must sign a lease for the Franchised Location within two hundred seventy (270) days of signing the Franchise Agreement. The primary lease must contain certain provisions which grant us certain rights, as your franchisor, and we reserve the right to modify these required provisions. You are responsible for obtaining the landlord's consent to those terms specified.
You and your landlord must sign our Lease Addendum and Conditional Assignment of Lease, which are attached to this Disclosure Document as Exhibit L. The Lease Addendum generally protects our rights under the Franchise Agreement. Under the Conditional Assignment of Lease, we can take possession of the Franchised Location if you violate the lease or any obligation to us. You will remain responsible for all obligations under the lease prior to the date when we take possession.
POS System.
You must acquire a point-of-sale system ("POS System") and certain customized software and related hardware that we specify and which you will use in every Barbershop from our designated vendors. You must also use our designated supplier to configure your POS System at your Barbershop before your Barbershop opens. Currently, the POS System is comprised of two personal computers which access a cloud-based POS System. We reserve the right to change the POS System specifications on 30 days' notice,
requiring you to incorporate tablets or other mobile devices, upgrade or replace the POS System, or purchase or license other hardware and software (including proprietary software developed by us or our affiliates) at your expense. We may also change standards for data security and require you to purchase hardware, software, maintenance services, update services or monitoring services that comply with our standards on 30 days' notice. Each of our franchisees must also use operations and accounting software or programs with capabilities that meet our standards and specifications. We reserve the right to approve other suppliers of the POS System hardware, software (which includes our proprietary customized software programs), and any software maintenance and update services that we require now or in the future. You will either pay us or the designated supplier directly for the POS System and any related services. We reserve the right to change the approved supplier for the POS System and any other software maintenance and update services that we require now or in the future. We may derive revenue from your license of the POS System, but did not derive revenue from the POS System in the 2024 fiscal year. We can require you to purchase from us or from an approved supplier any modifications and upgrades to the POS System that may be developed in the future.
Purchases from Designated or Approved Sources.
In addition to the POS System, we require that you purchase from designated or approved sources, certain branded hair care products and other proprietary hair care accessories that we have developed ("Proprietary Items"). Lefty's is currently a manufacturer of Proprietary Items. Salon Innovations, Inc. (dba Pro47), a hair care products distribution company based in Minnesota which is unaffiliated with us, is the designated supplier of the Proprietary Items manufactured by Lefty's. We reserve the right to change or designate suppliers (including changing the suppliers to us or our affiliates) at our discretion in the future. We refrain from divulging the formulations for Proprietary Items because we maintain the formulations as trade secrets. Pro47 charges standard and customary prices for a professional hair care line selling directly to a volume purchasing group of salons. Pro47 charges the same prices to franchised Barbershops as it charges to company and affiliate-owned Barbershops.
You will purchase some equipment for your Barbershop, a barber pole, barber chairs, waiting area chairs, hair care supplies and products for retail sale directly from our designated suppliers of these items or through purchasing arrangements we have negotiated. 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.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–29)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees must adhere to specific standards and specifications across various aspects of their business. These standards are detailed in the Operations Manual, which Floyds 99 may modify over time. The Operations Manual covers hair cutting, coloring, barber techniques, scheduling, pricing, client relations, employee training, marketing, advertising, hair care products, shop location, décor, equipment, furniture, fixtures, supplies, forms, and advertising materials. However, franchisees retain autonomy over employment decisions such as hiring, training, and compensation.
Floyds 99 requires franchisees to construct and design their barbershops according to the franchisor's specifications and design plans. Franchisees need to get written consent from Floyds 99 for the proposed location and any improvements before starting construction. Additionally, franchisees must follow Floyds 99's standards for marketing and promotional materials, submitting samples for approval if they haven't been pre-approved. Participation in system-wide promotions is mandatory, and Floyds 99 maintains control over internet advertising and social media using their trademarks.
Insurance is another area where Floyds 99 mandates specific standards. Franchisees must secure and maintain liability, unemployment, worker's compensation, employment practices liability, all-risk personal property, and cyber liability insurance at prescribed levels. Floyds 99 must be named as an additional insured on all policies, with at least 30 days' notice for any policy changes. Specific minimum coverage levels include $2,000,000 for general liability, $500,000 to $1,000,000 for employment practices liability, and $1,000,000 for cyber liability. Floyds 99 also has the right to change the insurance types and coverage limits with prior written notice.
Furthermore, franchisees are required to purchase certain equipment, retail products, salon supplies, and signage from designated suppliers. They must also acquire information technology services from approved vendors, such as Vector Security for network services. Floyds 99 provides a list of approved suppliers and standards during initial training or lease negotiations. Franchisees must use equipment, computers, inventory, supplies, and services that meet Floyds 99's standards. The franchisor reserves the right to require franchisees to purchase specific items directly from them or their affiliates. The estimated cost of purchases from designated sources or according to Floyds 99's standards may range from 50% to 75% of the initial establishment costs and 5% to 15% of ongoing operating costs.