What is the nature of the understanding reached between the Associate and Floyds 99 regarding Confidential Information?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ing | | Rhode Island | Pending | | South Dakota | Pending | | Virginia | Pending | | Washington | Pending | | Wisconsin | Pending |
| Harassment/Bulling | 28 |
|---|---|
| Other Topics | |
| Staffing | |
| CHAPTER FIVE - MARKETING | |
| Marketing Budgets | 30 |
| National Marketing Contribution | |
| Local Advertising Allocation | |
| Marketing Approval | 30 |
EXHIBIT I (TO DISCLOSURE DOCUMENT)
NONDISCLOSURE AND NONCOMPETITION AGREEMENT
| This Nondisclosure and Noncompetition Agreement (the "Agreement") is made and entered into | ||
|---|---|---|
| effective the day of, 20 by and between Floyd's 99 Franchising, LLC, a Colorado limited | ||
| liability company ("Company"), located at 7900 E. Berry Place, Greenwood Village, CO 80111 and | ||
| resides | at | |
| ("Associate"), | ||
| who | ||
RECITALS
- A. The Company has developed methods for establishing and operating franchises for the operation of retail hair care businesses ("FLOYD'S 99 Shops" or "Barbershops") which use the service mark "FLOYD'S 99" and related service marks, trade names and trademarks ("Marks");
- B. The Company has developed methods for establishing, operating and promoting Barbershops pursuant to the Company's distinctive business format, plans, methods, data, processes, marketing systems, formulas, techniques, designs, layouts, operating procedures, trademarks, proprietary marks and information and know-how of the Company ("Confidential Information") and such Confidential Information as may be further developed from time to time by the Company;
- C. The Company and its affiliates have established substantial goodwill and an excellent reputation with respect to the quality of services and products available, which goodwill and reputation have been and will continue to be of major benefit to the Company;
- D. Associate is or will become involved with the Company in the capacity of an officer, partner, director, agent, Principal Manager, employee, principal, beneficial owner or as an immediate family member of one of the foregoing persons, all of whom are associated with a FLOYD'S 99 Shop (the "Franchised Business") pursuant to the terms of a Franchise Agreement between the Company and the party identified as the "Franchisee" at the end of this Agreement, and in such capacity, Associate will become privileged as to certain Confidential Information; and
- E. Associate and the Company have reached an understanding with regard to nondisclosure by Associate of Confidential Information and with respect to noncompetition by Associate with the Company.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 FDD, an understanding has been reached between the Associate and the Company regarding the nondisclosure of Confidential Information. The Associate, who is or will become involved with Floyds 99 in a capacity such as an officer, partner, director, agent, Principal Manager, employee, principal, beneficial owner, or as an immediate family member of one of the foregoing persons associated with a Floyd's 99 Shop, will have access to certain Confidential Information. This agreement ensures that the Associate will not disclose this information.
The FDD defines Confidential Information as the distinctive business format, plans, methods, data, processes, marketing systems, manuals, product formulas, techniques, designs, layouts, operating procedures, trademarks, proprietary marks, and know-how developed and utilized by Floyds 99. This information is considered unique, exclusive property, and a trade secret of the company. The Associate acknowledges that any unauthorized disclosure or use of this Confidential Information would be wrongful and cause irreparable harm to Floyds 99.
Floyds 99 has invested significant effort and money in developing this Confidential Information and has taken precautions to protect its secrecy. The agreement emphasizes that it would be very costly for competitors to acquire or duplicate this information. This highlights the importance Floyds 99 places on protecting its proprietary business methods and trade secrets, which are crucial for maintaining its competitive edge in the retail hair care market. Prospective franchisees should understand the gravity of this confidentiality agreement and the potential legal ramifications of violating it.