Why does Floyds 99 refrain from divulging the formulations for Proprietary Items?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the POS System, we require that you purchase from designated or approved sources, certain branded hair care products and other proprietary hair care accessories that we have developed ("Proprietary Items"). Lefty's is currently a manufacturer of Proprietary Items. Salon Innovations, Inc. (dba Pro47), a hair care products distribution company based in Minnesota which is unaffiliated with us, is the designated supplier of the Proprietary Items manufactured by Lefty's. We reserve the right to change or designate suppliers (including changing the suppliers to us or our affiliates) at our discretion in the future. We refrain from divulging the formulations for Proprietary Items because we maintain the formulations as trade secrets. Pro47 charges standard and customary prices for a professional hair care line selling directly to a volume purchasing group of salons. Pro47 charges the same prices to franchised Barbershops as it charges to company and affiliate-owned Barbershops.
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, Floyds 99 does not disclose the formulations for its Proprietary Items because they are considered trade secrets. These Proprietary Items include branded hair care products and other hair care accessories developed by Floyds 99.
The designated supplier for these Proprietary Items is Salon Innovations, Inc. (dba Pro47), which is unaffiliated with Floyds 99. Pro47 charges standard prices for these products, similar to what they charge company-owned and affiliate-owned Floyds 99 locations.
This policy of maintaining the formulations as trade secrets is a common practice in franchising to protect the brand's unique offerings and competitive advantage. It ensures that only authorized franchisees and company-owned locations can offer these specific products, maintaining consistency and quality control across the Floyds 99 system.