Do any officers of Floyds 99 own an interest in Lefty's?
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 $1,956,463, and (2) Elevate's revenues from purchases made by our franchisees was $131,040, or 31% of Elevate's total revenue of $422,811. We estimate that the costs of your purchases from designated or approved sources, or according to our standards and specifications, may range from 50% to 75% of the total
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, none of Floyds 99's officers own an interest in Lefty's. However, three of Floyds 99's officers are also officers of Holdings and Lefty's. Additionally, three officers of Floyds 99 own an interest in Holdings, which is the parent company of Lefty's.
Lefty's manufactures Proprietary Items for sale in Floyds 99 Barbershops. In the fiscal year ending December 31, 2024, Floyds 99 franchisees' purchases from Lefty's accounted for $722,268, which was 33% of Lefty's total revenue of $1,956,463. This arrangement means that while no Floyds 99 officers directly own Lefty's, some officers have an ownership stake in the parent company, Holdings, creating a potential indirect financial interest.
This relationship is important for prospective franchisees to understand because it highlights a potential conflict of interest. While Floyds 99 states that its officers do not directly own Lefty's, their ownership in Holdings, Lefty's parent company, could influence decisions regarding the selection and pricing of Proprietary Items. Franchisees should consider this relationship when evaluating the costs and benefits of investing in a Floyds 99 franchise.