Is Floyds 99 obligated to maintain any particular pricing or distribution arrangement for franchisees?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
We have a purchasing arrangement with a designated vendor to supply FLOYD'S 99 Shops with certain retail products, salon supplies and equipment. Although rebates are available under this purchasing arrangement, in fiscal year 2024 we did not receive any rebates under this arrangement or any other arrangement based on purchases by franchised and affiliate-owned Barbershops. Other than this arrangement, we have no purchasing or distribution cooperatives, although we may establish pricing programs with certain suppliers based on volumes purchased. You should not rely on the continued availability of any particular pricing or distribution arrangement, nor the availability of any particular product or brand in deciding whether to purchase the franchise. Periodically, we may negotiate other purchase arrangements with suppliers for the benefit of our franchisees. FFL and Holdings have the right to receive payments from suppliers on account of their dealings with you and other franchisees. During the 2024 fiscal year, neither FFL nor Holdings received any payments from suppliers as a result of franchisee purchases in 2024. We may, in our discretion, retain the credit of any volume discounts, rebates or
incentives received as a result of your purchases, use them for training purposes or contribute them to the National Marketing Fund.
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 should not depend on the continuation of any specific pricing or distribution agreements. While Floyds 99 may establish pricing programs with suppliers based on purchase volumes, these arrangements are not guaranteed to remain in place. Floyds 99 also retains the option to negotiate other purchase arrangements with suppliers for the benefit of franchisees.
FFL and Holdings, affiliates of Floyds 99, have the right to receive payments from suppliers based on franchisee dealings. However, neither FFL nor Holdings received such payments in the 2024 fiscal year. Floyds 99 has the discretion to retain any volume discounts, rebates, or incentives resulting from franchisee purchases, using them for training or contributing them to the National Marketing Fund.
In practice, this means that while Floyds 99 may try to negotiate favorable pricing for its franchisees, these arrangements can change. A prospective franchisee should not base their decision to invest on the expectation of specific pricing or distribution terms. It is important to factor in potential fluctuations in supply costs and to inquire about the typical duration and stability of any existing pricing programs.