Does Floyds 99 require associates to agree to nondisclosure of confidential information?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Associate is or will become involved with the Company in the capacity of an officer, partner, director, agent, Principal Manager, employee, principal, beneficial owner or as an immediate family member of one of the foregoing persons, all of whom are associated with a FLOYD'S 99 Shop (the "Franchised Business") pursuant to the terms of a Franchise Agreement between the Company and the party identified as the "Franchisee" at the end of this Agreement, and in such capacity, Associate will become privileged as to certain Confidential Information; and
- E. Associate and the Company have reached an understanding with regard to nondisclosure by Associate of Confidential Information and with respect to noncompetition by Associate with the Company.
NOW THEREFORE, in consideration of the foregoing, the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Associate and the Company, intending legally to be bound, agree as follows:
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 agree to nondisclosure of confidential information. The FDD states that associates, in their capacity as officers, partners, directors, agents, Principal Managers, employees, principals, beneficial owners, or immediate family members associated with a Floyds 99 shop, will have access to confidential information.
The document indicates that Floyds 99 and its associates have an understanding regarding the nondisclosure of confidential information. This understanding is formalized in an agreement that addresses both the nondisclosure of confidential information and noncompetition with the company.
The agreement specifies that it is made in consideration of mutual promises and other valuable considerations, with both the associate and the company intending to be legally bound by its terms. This suggests that nondisclosure agreements are a standard part of the relationship between Floyds 99 and its associates to protect the company's confidential information and competitive advantage.