Do any officers of Floyds 99 own an interest in Holdings?
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 its officers own an interest in Holdings, which is the parent company of Lefty's. Additionally, three officers of Floyds 99 are also officers of both Holdings and Lefty's. However, none of Floyds 99's officers own an interest in Lefty's itself, as Lefty's is a wholly-owned subsidiary of Holdings.
This relationship is important for prospective franchisees to understand because Lefty's manufactures Proprietary Items that Floyds 99 franchisees are required to purchase. For the fiscal year ending December 31, 2024, franchisee purchases from Lefty's accounted for $722,268, or 33% of Lefty's total revenue of $1,956,463. This means that a portion of the money franchisees spend on required supplies goes to a company in which some of Floyds 99's officers have an ownership stake.
Furthermore, three of Floyds 99's officers also own minority interests in Elevate, another approved vendor that provides information technology services to franchisees. In 2024, Elevate's revenues from purchases made by franchisees totaled $131,040, which represented 31% of Elevate's total revenue of $422,811. This arrangement also directs franchisee spending towards a company with officer ownership. Prospective franchisees should consider these relationships and potential conflicts of interest when evaluating the Floyds 99 franchise opportunity.