What rights does a Floyds 99 franchisee have in the Designated Area outside of the Protected Territory?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Once Franchisor has defined the Protected Territory, Franchisee will have no further territorial or other rights in those portions of the Designated Area that are located outside of the Protected Territory.
The Franchisee acknowledges that its franchise rights as granted are non-exclusive and that the Franchisor, for itself and its successors and affiliates, retains the rights, among others:
a. to use, and to license others to use, the Marks and Licensed Methods in connection with the operation of FLOYD'S 99 Shops, at any location except within the Protected Territory;
b. to use the Marks to identify any type of services and products, promotional and marketing efforts or related items, and to identify products and services distributed or otherwise made available through alternative channels of distribution other than through FLOYD'S 99 Shops, at any location, whether within or outside of the Protected Territory, including but not limited to, at temporary events and venues or by way of wholesale distribution, Internet marketing or distribution, by mail order, catalog sales, social media marketing, telemarketing, other direct marketing or retail store product display;
c. to use and license others to use the Marks and Licensed Methods within or outside the Protected Territory in connection with the operation of Barbershops within "Captive Audience Facilities" which are defined as facilities where people are congregating for a primary purpose unrelated to the Barbershop business, creating significant foot traffic in the facility, including airports and other transportation hubs, hospitals, college campuses, convention centers, grocery stores, department stores, resorts and hotels and within office buildings, but not including lifestyle centers, town centers, "big box" retail centers and regional shopping malls.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, a franchisee's rights within the Designated Area, but outside the Protected Territory, are limited. Once Floyds 99 defines the Protected Territory, the franchisee has no further territorial or other rights in the portions of the Designated Area located outside of it. This means the franchisee's exclusive rights to operate a Floyds 99 shop are confined solely to the Protected Territory.
Floyds 99 retains significant rights within the Designated Area outside the Protected Territory. Specifically, Floyds 99 has the right to use, and license others to use, the Floyds 99 Marks and Licensed Methods in connection with the operation of Floyds 99 shops at any location outside the franchisee's Protected Territory. Floyds 99 also retains the right to use the Marks to identify any type of services and products, promotional and marketing efforts or related items, and to identify products and services distributed or otherwise made available through alternative channels of distribution other than through Floyds 99 Shops, at any location, whether within or outside of the Protected Territory.
Furthermore, Floyds 99 reserves the right to use and license others to use the Marks and Licensed Methods within or outside the Protected Territory in connection with the operation of Barbershops within "Captive Audience Facilities." These facilities include locations where people congregate for reasons other than visiting a barbershop, such as airports, hospitals, and college campuses. Floyds 99 reserves the right to contract with these facilities to develop and operate barbershops, even within a franchisee's Protected Territory, although they will notify the franchisee of the opportunity first.