Does Floyds 99 reserve the right to approve other suppliers of the POS System hardware and software?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
hisees must also use operations and accounting software or programs with capabilities that meet our standards and specifications. We reserve the right to approve other suppliers of the POS System hardware, software (which includes our proprietary customized software programs), and any software maintenance and update services that we require now or in the future. You will either pay us or the designated supplier directly for the POS System and any related services. We reserve the right to change the approved supplier for the POS System and any other software maintenance and update services that we require now or in the future. We may derive revenue from your license of the POS System, but did not derive revenue from the POS System in the 2024 fiscal year. We can require you to purchase from us or from an approved supplier any modifications and upgrades to the POS System that may be developed in the future.
Purchases from Designated or Approved Sources.
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.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–29)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, Floyds 99 does reserve the right to approve other suppliers of the POS system hardware and software. The FDD specifies that Floyds 99 franchisees must acquire a point-of-sale system (POS System) with customized software and related hardware from designated vendors. Floyds 99 also reserves the right to change the POS System specifications with 30 days' notice.
Floyds 99 also requires franchisees to use designated suppliers to configure the POS System at their Barbershops before opening. The POS System currently consists of two personal computers accessing a cloud-based system. Floyds 99 can require franchisees to incorporate tablets or other mobile devices, upgrade or replace the POS System, or purchase or license other hardware and software, including proprietary software developed by Floyds 99 or its affiliates, at the franchisee's expense.
Furthermore, Floyds 99 may change data security standards and require franchisees to purchase hardware, software, maintenance, update, or monitoring services to comply with these standards, providing 30 days' notice. Floyds 99 also reserves the right to change the approved supplier for the POS System and any other software maintenance and update services. While Floyds 99 may derive revenue from the POS System license, it did not do so in the 2024 fiscal year. Floyds 99 can also require franchisees to purchase modifications and upgrades to the POS System from them or an approved supplier.