Did Floyds 99 receive any rebates under purchasing arrangements in fiscal year 2024?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
We have a purchasing arrangement with a designated vendor to supply FLOYD'S 99 Shops with certain retail products, salon supplies and equipment. Although rebates are available under this purchasing arrangement, in fiscal year 2024 we did not receive any rebates under this arrangement or any other arrangement based on purchases by franchised and affiliate-owned Barbershops. Other than this arrangement, we have no purchasing or distribution cooperatives, although we may establish pricing programs with certain suppliers based on volumes purchased. You should not rely on the continued availability of any particular pricing or distribution arrangement, nor the availability of any particular product or brand in deciding whether to purchase the franchise. Periodically, we may negotiate other purchase arrangements with suppliers for the benefit of our franchisees. FFL and Holdings have the right to receive payments from suppliers on account of their dealings with you and other franchisees. During the 2024 fiscal year, neither FFL nor Holdings received any payments from suppliers as a result of franchisee purchases in 2024. We may, in our discretion, retain the credit of any volume discounts, rebates or
incentives received as a result of your purchases, use them for training purposes or contribute them to the National Marketing Fund.
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, while rebates are available through a purchasing arrangement with a designated vendor, Floyds 99 did not receive any rebates under this or any other arrangement based on purchases by franchised and affiliate-owned barbershops in fiscal year 2024. This arrangement involves the supply of certain retail products, salon supplies, and equipment to Floyds 99 shops.
Furthermore, neither FFL nor Holdings, which are likely related entities to Floyds 99, received any payments from suppliers as a result of franchisee purchases during the 2024 fiscal year. However, Floyds 99 retains the discretion to keep any volume discounts, rebates, or incentives resulting from franchisee purchases, using them for training or contributing them to the National Marketing Fund.
This indicates that while purchasing arrangements exist that could generate rebates, franchisees should not expect these rebates to directly benefit them. Instead, Floyds 99 has the option to utilize these funds for broader purposes like training programs or marketing initiatives. Prospective franchisees should inquire about how these potential rebates are specifically used and what impact, if any, they have on franchisee support or marketing efforts.