What rights does Floyds 99 reserve regarding franchised locations?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The Franchisor and its affiliates reserve the right to contract with Captive Audience Facilities to develop and operate Barbershops within these facilities and, if the contract includes such a location within the Franchisee's Protected Territory, the Franchisor will notify the Franchisee of the opportunity to
develop and operate the proposed Barbershop within the Captive Audience Facility, on the terms and conditions negotiated by the Franchisor in the contract. The Franchisee agrees to respond to the Franchisor within 15 days of receipt of notice of the proposed Barbershop, whether the Franchisee wishes to develop the proposed Barbershop under the terms of the contract that the Franchisor has negotiated. If the Franchisee elects not to develop the proposed Barbershop, the Franchisor, one of its affiliates, or another franchisee may be granted the right to develop the proposed Barbershop and the Franchisee agrees that in such case, the Franchisee will not have any further rights to the proposed Barbershop or the location of the proposed Barbershop during the term of the contract between the Franchisor and the Captive Audience Facility; and
d. to use and license the use of other proprietary marks or methods in connection with the sale of products and services similar to those which the Franchisee will sell, whether in alternative channels of distribution, including but not limited to, the Internet, or in connection with the operation of retail hair care businesses, at any location, whether within or outside of the Protected Territory, which businesses are similar to, or different from FLOYD'S 99 Shops, on any terms and conditions as the Franchisor deems advisable.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 retains several rights regarding the use of its marks and methods, even within a franchisee's designated territory. Specifically, Floyds 99 reserves the right to use and license others to use their marks and licensed methods for Floyds 99 shops outside a franchisee's protected territory. This means that while a franchisee is granted a protected territory, Floyds 99 can still operate or franchise other locations outside of that area.
Floyds 99 also retains the right to use its marks to identify any type of services and products through alternative distribution channels, such as wholesale distribution, internet marketing, mail order, catalog sales, social media, telemarketing, or retail store product display, regardless of whether these channels are within or outside the franchisee's protected territory. This allows Floyds 99 to explore various avenues for selling products and services without being restricted by the franchisee's territory.
Furthermore, Floyds 99 reserves the right to operate barbershops within "Captive Audience Facilities" like airports, hospitals, college campuses, and convention centers, even within a franchisee's protected territory. If Floyds 99 contracts to develop a barbershop in a Captive Audience Facility within a franchisee's protected territory, the franchisee will be notified and given the opportunity to develop and operate the barbershop under the terms negotiated by Floyds 99. If the franchisee declines, Floyds 99 can grant the right to another franchisee or one of its affiliates, and the original franchisee will have no further rights to that location during the contract term. These reservations of rights allow Floyds 99 to pursue various business opportunities and alternative distribution methods, which may impact a franchisee's potential market and revenue streams.