What is the meaning of 'Protected Territory' for a Floyds 99 franchise, as defined in the franchise agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Protected Territory.
Subject to the Franchisor's reservation of rights described in Section 3.4 below, the Franchisor shall not establish and operate, or franchise another person or entity to establish and operate, a FLOYD'S 99 Shop within the geographic area described in Exhibit I, attached hereto (the "Protected Territory").
Once Franchisor has defined the Protected Territory, Franchisee will have no further territorial or other rights in those portions of the Designated Area that are located outside of the Protected Territory.
- 3.3 Limitation on Franchise Rights; Relocation.
The rights that are granted to the Franchisee are for the specific Franchised Location and cannot be transferred to an alternative Franchised Location, or any other location, without the prior written approval of the Franchisor, which approval shall not be unreasonably withheld.
The Franchisee shall not operate another business, offer services or products which are part of the Licensed Methods at any site other than the Franchised Location (except for other Franchised Locations covered by other Franchise Agreements with the Franchisee), fill wholesale orders, sell products or services by mail order or through catalogs or the Internet, transship or reship products, or offer any other type of off-site service or sale of products.
If Franchisee desires to relocate the FLOYD'S 99 Shop or is unable to continue the operation of the FLOYD'S 99 Shop at the Franchised Location because of damage to or destruction of the FLOYD'S 99 Shop, then Franchisee may request Franchisor's approval to relocate the FLOYD'S 99 Shop to another location in the Protected Territory, which approval shall not be unreasonably withheld.
If Franchisor grants Franchisee the right to relocate the FLOYD'S 99 Shop, then Franchisee shall comply with the site selection and construction procedures set forth in Article 5 and pay Franchisor the then-current relocation fee.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a franchisee's protected territory is a specific geographic area, defined in Exhibit I of the franchise agreement, within which Floyds 99 will not establish or franchise another party to establish and operate a Floyds 99 shop. This protection is subject to certain rights Floyds 99 reserves for itself. Once the protected territory is defined, the franchisee has no further territorial rights in any parts of the designated area that fall outside the protected territory.
The Floyds 99 franchisee's rights are limited to the specific franchised location and cannot be transferred to another location without prior written approval from Floyds 99. The franchisee is also restricted from operating another business or offering Floyds 99's licensed methods at any location other than the franchised location, with the exception of other franchised locations under separate agreements. They are also restricted from filling wholesale orders, selling products or services via mail order, catalogs, or the internet, or offering any other type of off-site service or sale of products.
If a Floyds 99 franchisee wishes to relocate their shop or cannot continue operating at the current location due to damage or destruction, they may request approval from Floyds 99 to relocate to another location within their protected territory. This approval will not be unreasonably withheld. If relocation is approved, the franchisee must adhere to Floyds 99's site selection and construction procedures and pay the current relocation fee. Floyds 99 retains the right to use and license others to use their marks and licensed methods outside the protected territory and within the protected territory in connection with the operation of Barbershops within "Captive Audience Facilities".