During the term of the agreement, can a Floyds 99 franchisee divert business from another Floyds 99 franchisee?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
e of the Marks hereunder, the Franchisor has also licensed commercially valuable information which comprises and is a part of the Licensed Methods, including without limitation, operations, proprietary products, proprietary product formulas, vendor lists, marketing, advertising and related information and materials and that the value of this information derives not only from the time, effort and money which went into its compilation, but from the usage of the same by all the franchisees of the Franchisor using the Marks and Licensed Methods. Therefore, other than the FLOYD'S 99 Shop licensed herein or authorized by separate agreement with the Franchisor, neither the Franchisee nor any of the Franchisee's officers, directors, shareholders, Principal Managers, Barbershop managers, equity owners, members, managers or partners, nor any member of his or their immediate families, shall during the term of t
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, a franchisee is prohibited from diverting business away from other franchisees during the term of the agreement. Specifically, a franchisee cannot divert or attempt to divert any business related to, or any client or account of the Floyds 99 shop, the Franchisor's business or any other Floyds 99 franchisee's business, by direct inducement or otherwise.
This restriction also extends to the employment of any employee of the Franchisor or another franchisee. A franchisee cannot attempt to divert the employment of any employee of the Franchisor or another franchisee licensed by the Franchisor to use the Marks and Licensed Methods, to any Competitive Business by any direct inducement or otherwise.
This clause protects the entire Floyds 99 network by preventing franchisees from actively poaching customers or employees from each other. This type of clause is common in franchise agreements to maintain stability and prevent internal competition that could harm the brand's overall performance.