What are the potential consequences if a Floyds 99 Franchised Location does not comply with all applicable laws?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
9 Shop operations and shall operate the business in accordance with the Operations Manual and in such a manner as not to detract from or adversely reflect upon the name and reputation of the Franchisor and the goodwill associated with the Floyd's 99 Franchising, LLC name and the Marks.
- b. Compliance with Laws and Good Business Practices. The Franchisee shall conduct itself and operate its FLOYD'S 99 Shop in compliance with all applicable federal, state and local laws, regulations and other ordinances, including, without limitation, barbering and cosmetology regulations, health and public safety orders and regulations, barbering and cosmetology licensing laws, music licensing laws, data security laws, privacy laws, and other orders, ordinances and regulations in such a manner so as to promote a good public image in the business community. In connection therewith, the Franchisee will be solely and fully responsible for obtaining any and all licenses to carry on business at the FLOYD'S 99 Shop. The Franchisee shall provide the Franchisor with copies of all barbering and cosmetology licenses held by the Franchisee and each of its employees upon request. Each of the Franchisee's employees shall provide only those services to clients that they are licensed to provide. In addition, the Franchisee shall provide to the Franchisor immediately copies of all barbering and cosmetology board, health and sanitation department, fire department, building department, and other state or local entity or agency warnings, notices of deficiency or non-compliance, reports of inspections and other documents indicating that the Franchisee has not met or maintained the highest governmental standards as and when such reports, notices and documents become available. The Franchisee shall be solely responsible for any penalties or fines assessed for failure to abide by such laws and regulations.
- c. Management. The Franchisee acknowledges that proper management of the FLOYD'S 99 Shop is important and shall insure that one of the principal owners of the Franchisee entity and, if applicable, the designated Principal Manager who has completed the Franchisor's initial training program, are responsible for the management of the FLOYD'S 99 Shop at all times. The Franchisee acknowledges and agrees that if this is the first Franchise Agreement between the
Franchisee and the Franchisor, the Franchisee's principal owner shall be actively involved in the day-to-day management of the FLOYD'S 99 Shop.
- d. Approved Services and Products. The Franchisee shall offer only services and products through its Barbershop which meet or exceed the minimum standards and specifications established by the Franchisor more fully described in the Operations Manual.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees must operate their Floyds 99 shop in compliance with all applicable federal, state, and local laws, regulations, and ordinances. This includes, but is not limited to, barbering and cosmetology regulations, health and public safety orders and regulations, barbering and cosmetology licensing laws, music licensing laws, data security laws, and privacy laws. Franchisees are solely responsible for obtaining all necessary licenses to operate the Floyds 99 shop and must provide copies of barbering and cosmetology licenses for themselves and their employees to Floyds 99 upon request.
Failure to comply with these laws can lead to termination of the franchise agreement. Floyds 99 can terminate the agreement with 30 days written notice if the franchisee breaches any provision of the agreement and fails to correct the issue within that 30-day period. This includes failing to maintain operating procedures and standards, engaging in deceptive practices, failing to obtain required consent, failing to comply with the operations manual, or breaching any related agreements.
In addition to potential termination, non-compliance with laws and regulations can harm the reputation and goodwill associated with the Floyds 99 brand. Franchisees are expected to conduct themselves in a manner that promotes a good public image in the business community. Maintaining compliance with all applicable laws is therefore crucial for the success and longevity of a Floyds 99 franchise.