Does the Floyds 99 non-compete agreement apply to the franchisee's directors?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Therefore, other than the FLOYD'S 99 Shop licensed herein or authorized by separate agreement with the Franchisor, neither the Franchisee nor any of the Franchisee's officers, directors, shareholders, Principal Managers, Barbershop managers, equity owners, members, managers or partners, nor any member of his or their immediate families, shall during the term of this Agreement:
a. have any direct or indirect controlling interest as a disclosed or beneficial owner in a "Competitive Business" as defined below;
b. perform services as a director, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business; or
c. divert or attempt to divert any business related to, or any client or account of the FLOYD'S 99 Shop, the Franchisor's business or any other FLOYD'S 99 franchisee's business, by direct inducement or otherwise, or divert or attempt to divert the employment of any employee of the Franchisor or another franchisee licensed by the Franchisor to use the Marks and Licensed Methods, to any Competitive Business by any direct inducement or otherwise.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the non-compete agreement extends to the franchisee's directors. During the term of the franchise agreement, neither the franchisee nor any of their officers, directors, shareholders, principal managers, barbershop managers, equity owners, members, managers, or partners, including their immediate families, can have a direct or indirect controlling interest in a competitive business.
This restriction also prevents these individuals from performing services for a competitive business as a director, officer, manager, employee, consultant, representative, or agent. Furthermore, they are prohibited from diverting or attempting to divert business or clients from the Floyds 99 shop, the franchisor's business, or any other Floyds 99 franchisee's business. This includes attempting to divert employees of the franchisor or other franchisees to a competitive business.
This comprehensive non-compete clause ensures that those closely associated with the Floyds 99 franchise are fully committed to its success and do not engage in activities that could undermine the brand or its network of franchisees. Prospective franchisees should carefully consider these restrictions and ensure that all relevant parties understand and are willing to comply with them.