Can Floyds 99 require a franchisee to purchase data backup software and services?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
As described in Item 8 above, you must license a specified point-of-sale system (referred to as "POS System") from us or our designated third party vendor. You may, at your option, choose to purchase or lease a back office computer, in addition to the POS System. The POS System allows you to manage walk-in clients, manage reservations, schedule appointments and record sales, process credit cards, and provides you with information necessary to monitor your inventory to prepare financial statements in accordance with our standards and specifications. The POS System has been customized for the business methods we have established for FLOYD'S 99 Shops. Additionally, you must use our designated credit card processing service which operates through our POS System, take security measures that comply with PCI Security Standards and otherwise meet our standards to ensure the security of your network. You must purchase security monitoring services and equipment, including, but not limited to, firewall protection, and security breach insurance, from a vendor we approve. To the extent not already a part of the POS System, we reserve the right to require you to purchase data backup software and services. We have independent access to information through the POS System concerning sales and inventory of your FLOYD'S 99 Shop, and we control the type of information that is provided through the POS System. We require remote access to your POS System. We reserve the right to require you to purchase and install remote support and access software that we specify, in the event these support and access capabilities are not already a part of the POS System, and provide us with the access information we require. If and when we have our own proprietary software developed specially for the Barbershops and made available, we reserve the right to require that you purchase our proprietary software package. We also reserve the right to require you to purchase and use additional hardware and software for a FLOYD'S 99 intranet system among all FLOYD'S 99 Shops, on 30 days prior written notice. The POS System installation, configuration and integration must be performed by or as required by our designated third party vendor and in accordance with our standards and specifications.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–38)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 reserves the right to require franchisees to purchase data backup software and services. This is contingent on such software and services not already being part of the franchisee's Point-Of-Sale (POS) system.
This requirement ensures that all Floyds 99 shops have adequate data protection measures in place. This protects the franchisee's business data and aligns with Floyds 99's standards for data security and operational consistency across all locations.
For a prospective franchisee, this means they may need to budget for data backup software and services in addition to the POS system. The cost will depend on the specific software and services Floyds 99 requires. It is important to clarify with Floyds 99 what specific data backup solutions are approved or required and what the estimated costs are to factor these into the initial investment and ongoing operational expenses.
The FDD also states that Floyds 99 has independent access to information through the POS system concerning sales and inventory, and they control the type of information provided through it. They also require remote access to the POS system. This highlights the importance of data security and the need for franchisees to comply with Floyds 99's requirements to protect sensitive business information.