What specific elements are included in the definition of "Licensed Methods" for a Floyds 99 franchise?

• 2.1 Grant of Franchise. The Franchisor grants to the Franchisee, and the Franchisee accepts from the Franchisor, the right to use the Marks and Licensed Methods in connection with the establishment and operation of one FLOYD'S 99 Shop, at the location described in Section 3.1 of this Agreement. The Franchisee agrees to use the Marks and Licensed Methods, as they may be changed, improved, and further developed by the Franchisor from time to time, only in accordance with the terms and conditions of this Agreement.

• 2.2 Scope of Franchise Operations. The Franchisee shall at all times comply with the Franchisee's obligations hereunder and shall continuously use best efforts to promote and operate the FLOYD'S 99 Shop. The Franchisee shall not engage in any business other than the operation of the Barbershop. The Franchisee shall utilize the Marks and Licensed Methods to operate all aspects of the business franchised hereunder in accordance with the methods and systems developed and prescribed from time to time by the Franchisor, all of which are a part of the Licensed Methods. The Franchisee's FLOYD'S 99 Shop shall offer all services and products as the Franchisor shall designate. The Franchisee shall be restricted from offering or selling any services or products not previously approved by the Franchisor in writing and shall further be restricted from offering the authorized services or distributing the authorized products for nonretail or off-site sale except as permitted by the Franchisor in writing.

• 5.5 Equipment and Inventory.

The Franchisee shall purchase or otherwise obtain for use or sale at the Franchised Location and in connection with the FLOYD'S 99 Shop, equipment, inventory, other products and services of a type and in an amount which complies with the standards and specifications of the Franchisor.

The Franchisee acknowledges that the type, quality, configuration, capability and/or performance of the equipment, inventory and other products and services used or offered through the FLOYD'S 99 Shop are all standards and specifications which are a part of the Licensed Methods and therefore such equipment, inventory, products, other items and services must be purchased, leased or otherwise obtained in accordance with the Franchisor's standards and specifications.

In addition to the foregoing, the Franchisee acknowledges and agrees that any improvements or modifications directly or indirectly related to the Barbershop, whether or not copyrightable, shall be deemed to be a part of the Licensed Methods and shall inure to the benefit of the Franchisor.

• 5.6 Point-of-Sale System, Computers and Related Equipment.

The Franchisee shall equip the Barbershop with a point-of-sale system, computer hardware, software, telecommunications equipment and other designated equipment as is consistent with the standards and specifications of the Franchisor.

• 9.1 Franchisor's Services. The Franchisor, or its designee, shall, during the Franchisee's operation of the FLOYD'S 99 Shop, make available to the Franchisee the following services:

  • a. The Franchisor shall give the Franchisee access to advertising and promotional materials as may be developed by the Franchisor, the cost of which may be passed on to the Franchisee or charged to the National Marketing Fund (defined in Section 13.2 below), at the Franchisor's option.
  • b. Upon the reasonable request of the Franchisee, consultation by telephone, facsimile or electronic mail regarding the continued operation and management of a FLOYD'S 99 Shop and advice regarding hair care services, styling trends, client relations, product purchase, supply and sale and similar advice.
  • c. Provision of seminars, webinars or programs, at a frequency to be determined by the Franchisor, on new methods, services, marketing techniques, equipment and products.
  • d. Updates of information and programs regarding the franchised business, the FLOYD'S 99 concept, the hair care industry generally, and the Licensed Methods, at a frequency to be determined by the Franchisor, including, without limitation, information about improvements to existing hair care services offered, new hair care service offerings, styling trends and products and merchandise which may be developed and made available to FLOYD'S 99 franchisees as a part of the Licensed Methods. The Licensed Methods may address (to the extent allowed by law) the maximum, minimum or other price requirements for products and services the FLOYD'S 99 Shop sells, including requirements for special offers, discounts and promotions.

• 15.6 Change of Marks and Licensed Methods.

The Franchisor may in its sole discretion, discontinue, change, modify or alter the Marks and the Licensed Methods by among other things, adopting or developing

Source: Item 22 — CONTRACTS (FDD pages 57–58)