What is the scope of the prohibition on disclosing Confidential Information for Associates of Floyds 99?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. The Company has developed methods for establishing and operating franchises for the operation of retail hair care businesses ("FLOYD'S 99 Shops" or "Barbershops") which use the service mark "FLOYD'S 99" and related service marks, trade names and trademarks ("Marks");
- B. The Company has developed methods for establishing, operating and promoting Barbershops pursuant to the Company's distinctive business format, plans, methods, data, processes, marketing systems, formulas, techniques, designs, layouts, operating procedures, trademarks, proprietary marks and information and know-how of the Company ("Confidential Information") and such Confidential Information as may be further developed from time to time by the Company;
- C. The Company and its affiliates have established substantial goodwill and an excellent reputation with respect to the quality of services and products available, which goodwill and reputation have been and will continue to be of major benefit to the Company;
- D. Associate is or will become involved with the Company in the capacity of an officer, partner, director, agent, Principal Manager, employee, principal, beneficial owner or as an immediate family member of one of the foregoing persons, all of whom are associated with a FLOYD'S 99 Shop (the "Franchised Business") pursuant to the terms of a Franchise Agreement between the Company and the party identified as the "Franchisee" at the end of this Agreement, and in such capacity, Associate will become privileged as to certain Confidential Information; and
- E. Associate and the Company have reached an understanding with regard to nondisclosure by Associate of Confidential Information and with respect to noncompetition by Associate with the Company.
NOW THEREFORE, in consideration of the foregoing, the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Associate and the Company, intending legally to be bound, agree as follows:
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 FDD, associates are prohibited from disclosing confidential information. The FDD defines associates as individuals involved with Floyds 99 in various capacities, including officers, partners, directors, agents, Principal Managers, employees, principals, beneficial owners, or immediate family members of the aforementioned, all of whom are associated with a Floyds 99 Shop. Due to their association with the Franchised Business, these individuals will have access to confidential information.
The FDD specifies that associates and Floyds 99 have agreed on the non-disclosure of confidential information and non-competition by the associate with the company. This agreement is made in consideration of the mutual promises outlined and other valuable considerations. The agreement emphasizes that associates are legally bound to uphold these conditions.
This agreement means that anyone associated with a Floyds 99 franchise, from owners to family members, must protect the brand's confidential information. This obligation is legally binding, highlighting the importance Floyds 99 places on safeguarding its proprietary information and maintaining a competitive edge. A prospective franchisee should carefully review the definition of "associate" and the scope of "Confidential Information" to understand who is bound by these restrictions and what information is protected.