What post-termination obligations apply to a Floyds 99 franchisee after a hold-over period?

According to the 2025 Floyds 99 Franchise Disclosure Document, if a franchisee continues to operate the barbershop beyond the initial 10-year term or any renewal period, it is considered a month-to-month arrangement. This hold-over period is subject to termination with a 30-day notice, or as required by law. If the hold-over exceeds 90 days, Floyds 99 can immediately terminate the agreement, unless a longer period is legally mandated.

Upon termination after any hold-over period, the franchisee and those associated with them, such as family members, officers, directors, partners, and managing agents, must comply with Sections 20.3, 20.4, 22.2, and 22.3 of the Franchise Agreement. They must also adhere to all other applicable post-termination obligations outlined in the agreement. This means that all the standard obligations that apply when a franchise agreement ends also apply after a hold-over period.

These post-termination obligations may include ceasing to use Floyds 99's trademarks and operating systems, fulfilling any outstanding financial obligations to Floyds 99, and potentially being subject to non-compete restrictions. It is important for prospective franchisees to carefully review the specific details of Sections 20.3, 20.4, 22.2, and 22.3, as well as the other post-termination clauses within the Franchise Agreement, to fully understand their responsibilities should they continue operating beyond the original term and the agreement is subsequently terminated.