Does Floyds 99 require associates to agree to noncompetition with the company?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
to protect Franchisor’s unique and valuable interests which include, without | | | limitation, relationships with customers, goodwill, the protection of trade secrets and other confidential | | | information, protection from unfair competition, and other protectable interests. | |
| State | Effective Date | |---|---| | California | Pending | | Illinois | Pending | | Indiana | Pending | | Maryland | Pending | | Minnesota | Pending | | North Dakota | Pending | | Rhode Island | Pending | | South Dakota | Pending | | Virginia | Pending | | Washington | Pending | | Wisconsin | Pending |
| Harassment/Bulling | 28 |
|---|---|
| Other Topics | |
| Staffing | |
| CHAPTER FIVE - MARKETING | |
| Marketing Budgets | 30 |
| National Marketing Contribution | |
| Local Advertising Allocation | |
| Marketing Approval | 30 |
EXHIBIT I (TO DISCLOSURE DOCUMENT)
NONDISCLOSURE AND NONCOMPETITION AGREEMENT
| This Nondisclosure and Noncompetition Agreement (the "Agreement") is made and entered into | ||
|---|---|---|
| effective the day of, 20 by and between Floyd's 99 Franchising, LLC, a Colorado limited | ||
| liability company ("Company"), located at 7900 E. Berry Place, Greenwood Village, CO 80111 and | ||
| resides | at | |
| ("Associate"), | ||
| who | ||
RECITALS
- A. The Company 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");
- B. The Company has developed methods for establishing, operating and promoting Barbershops pursuant to the Company's distinctive business format, plans, methods, data, processes, marketing systems, formulas, techniques, designs, layouts, operating procedures, trademarks, proprietary marks and information and know-how of the Company ("Confidential Information") and such Confidential Information as may be further developed from time to time by the Company;
- C. The Company and its affiliates have established substantial goodwill and an excellent reputation with respect to the quality of services and products available, which goodwill and reputation have been and will continue to be of major benefit to the Company;
- D.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, associates are required to sign a Nondisclosure and Noncompetition Agreement. The agreement is between Floyd's 99 Franchising, LLC and the associate, who is or will become involved with the company in a capacity such as an officer, partner, director, agent, Principal Manager, employee, principal, beneficial owner, or as an immediate family member of one of the foregoing persons associated with a Floyd's 99 shop.
The FDD states that Floyds 99 and the associate have reached an understanding regarding nondisclosure of confidential information and noncompetition with the company. This agreement is made in consideration of mutual promises and other valuable considerations.
This agreement ensures that associates who gain access to Floyds 99's confidential information, such as business methods, marketing systems, and trade secrets, are legally bound not to disclose this information or compete with Floyds 99. This is a standard practice in franchising to protect the brand's competitive advantage and proprietary information.