Who is subject to the post-termination non-compete agreement for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.2 Continuation. If for any reason, the Franchisee continues to operate the Barbershop beyond the term of this Agreement or any subsequent renewal period, it shall be deemed to be on a month-to-month basis under the terms of this Agreement and subject to termination upon 30 days' notice or as required by law. If said hold-over period exceeds 90 days, this Agreement is subject to immediate termination unless applicable law requires a longer period. Upon termination after any hold-over period, the Franchisee and those in active concert with the Franchisee, including family members, officers, directors, partners and managing agents, are subject to the terms of Sections 20.3, 20.4, 22.2 and 22.3 of this Agreement and all other applicable post-termination obligations contained in this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, if a franchisee continues to operate the barbershop beyond the initial term or any renewal period (a hold-over period), they become subject to certain post-termination obligations. Specifically, if this hold-over period exceeds 90 days, the franchise agreement is subject to immediate termination, unless applicable law requires a longer period.
Upon termination after such a hold-over period, the franchisee and those in active concert with them are subject to specific sections of the agreement and all other applicable post-termination obligations. This includes not only the franchisee but also family members, officers, directors, partners, and managing agents who are actively involved with the Floyds 99 franchise.
These individuals are subject to the terms outlined in Sections 20.3, 20.4, 22.2, and 22.3 of the Franchise Agreement, which likely cover aspects such as non-competition, confidentiality, and the return of proprietary information. It is important for potential franchisees to carefully review these sections to understand the full scope of their post-termination obligations and who exactly is bound by them.