What is the purpose of the Franchise Agreement for a Floyds 99 shop?

THIS AGREEMENT (the "Agreement") is made this day of, 20, by and between FLOYD'S 99 FRANCHISING, LLC, a Colorado limited liability company, located at 7900 E. Berry Place, Greenwood Village, CO 80111 (the "Franchisor") and located at (the "Franchisee"), who, on the basis of the following understandings and agreements, agree as follows:

1. PURPOSE

• 1.1 The Franchisor has developed methods for establishing and operating franchises for the operation of retail hair care businesses ("FLOYD'S 99 Shops" or "Barbershops") which use the service mark "FLOYD'S 99" and related service marks, trade names and trademarks ("Marks") and the Franchisor's proprietary methods of doing business ("Licensed Methods").
• 1.2 The Franchisor grants the right to others to develop and operate FLOYD'S 99 Shops, under the Marks and pursuant to the Licensed Methods.
• 1.3 The Franchisee desires to establish a FLOYD'S 99 Shop at a location identified herein or to be later identified, and the Franchisor desires to grant the Franchisee the right to operate a FLOYD'S 99 Shop at such location under the terms and conditions which are contained in this Agreement.

2. GRANT OF FRANCHISE

• 2.1 Grant of Franchise. The Franchisor grants to the Franchisee, and the Franchisee accepts from the Franchisor, the right to use the Marks and Licensed Methods in connection with the establishment and operation of one FLOYD'S 99 Shop, at the location described in Section 3.1 of this Agreement. The Franchisee agrees to use the Marks and Licensed Methods, as they may be changed, improved, and further developed by the Franchisor from time to time, only in accordance with the terms and conditions of this Agreement.
• 2.2 Scope of Franchise Operations. The Franchisee shall at all times comply with the Franchisee's obligations hereunder and shall continuously use best efforts to promote and operate the FLOYD'S 99 Shop. The Franchisee shall not engage in any business other than the operation of the Barbershop. The Franchisee shall utilize the Marks and Licensed Methods to operate all aspects of the business franchised hereunder in accordance with the methods and systems developed and prescribed from time to time by the Franchisor, all of which are a part of the Licensed Methods. The Franchisee's FLOYD'S 99 Shop shall offer all services and products as the Franchisor shall designate. The Franchisee shall be restricted from offering or selling any services or products not previously approved by the Franchisor in writing and shall further be restricted from offering the authorized services or distributing the authorized products for nonretail or off-site sale except as permitted by the Franchisor in writing.

Source: Item 22 — CONTRACTS (FDD pages 57–58)