What does Floyds 99 reserve the right to do with financial and accounting reports received from franchisees?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor reserves the right to disclose data derived from all financial and accounting reports received from the Franchisee to the other franchisees and affiliates in the FLOYD'S 99 system with information identifying the Franchisee.
The Franchisor also reserves the right to disclose data derived from the Franchisee's financial and accounting reports to parties outside of the FLOYD'S 99 system, without identifying the Franchisee, except to the extent identification of the Franchisee is required by law.
The Franchisee consents to the Franchisor obtaining financial and account information regarding the Barbershop and its operations from third parties with whom the Franchisee does business, as and when deemed necessary by the Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the franchisor has specific rights regarding the financial data it receives from franchisees. Floyds 99 reserves the right to disclose data derived from these financial and accounting reports to other franchisees and affiliates within the Floyds 99 system. However, when sharing this information internally, Floyds 99 is obligated to remove any details that could identify the specific franchisee.
Floyds 99 also reserves the right to disclose data from a franchisee's financial reports to parties outside the Floyds 99 system. In these external disclosures, the franchisor will not identify the franchisee, unless such identification is legally required. Additionally, the franchisee consents to Floyds 99 obtaining financial and account information about the barbershop and its operations from third parties with whom the franchisee does business, should Floyds 99 deem it necessary.
This clause in the franchise agreement allows Floyds 99 to benchmark financial performance across its franchise network and to share relevant data with its franchisees. It also enables Floyds 99 to use aggregated, anonymized data for business analysis and reporting purposes outside the franchise system, while protecting the franchisee's identity unless legally obligated to disclose it. Prospective franchisees should consider how comfortable they are with this level of financial transparency and data sharing.