Do any officers of Floyds 99 own an interest in Elevate?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
purchase some or all of the items or services used in your Barbershop from us or our affiliates upon 30 days' written notice to you.
Other than Lefty's and Elevate, we are not currently affiliated with any designated or approved suppliers. Three of our officers are also officers of Holdings and Lefty's, but none of our officers own an interest in Lefty's, a wholly owned subsidiary of Holdings. Three of our officers own an interest in Holdings, the parent of Lefty's. Three of our officers also own minority interests in Elevate. FFL, on behalf of itself and its affiliates, reserves the right to sell products, equipment, supplies and services to franchisees and to derive revenue from such sales. Lefty's currently manufactures Proprietary Items for sale in the Barbershops and Elevate currently provides information technology services to franchisees. For the fiscal year ending December 31, 2024: (1) Lefty's revenues related to purchases of Proprietary Items by our franchisees was $722,268, or 33% of Lefty's total revenue of $1,95
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, three of the company's officers own minority interests in Elevate. Elevate is a designated vendor that provides information technology services to Floyds 99 franchisees.
This relationship is important for prospective franchisees to understand because it means that some of the individuals who manage Floyds 99 also have a financial stake in a key vendor. This could create a conflict of interest, as these officers might be incentivized to favor Elevate over other IT service providers, even if Elevate's services are not the best or most cost-effective option for franchisees.
In the fiscal year ending December 31, 2024, Elevate's revenues from purchases made by Floyds 99 franchisees totaled $131,040, which represented 31% of Elevate's total revenue of $422,811. This indicates that Floyds 99 franchisees are a significant source of revenue for Elevate. Given this financial relationship, it is crucial for potential franchisees to carefully evaluate the services provided by Elevate and compare them to other options in the market to ensure they are receiving fair value.
Prospective franchisees should also inquire about the process Floyds 99 uses to select and approve vendors like Elevate, and whether there are any safeguards in place to prevent conflicts of interest. Understanding these dynamics can help franchisees make informed decisions about their technology investments and ensure they are aligned with their best interests.