After termination of a Floyds 99 franchise, what is the geographic radius within which the franchisee is restricted from engaging in a Competitive Business?

Based on the 2025 Floyds 99 Franchise Disclosure Document, the document does not specify a geographic radius within which a franchisee is restricted from engaging in a competitive business after termination. However, the FDD does define what constitutes a "Competitive Business," which includes any business operating or franchising a retail hair care business deriving more than 5% of its gross sales from haircuts or hair care products, or a wholesale business deriving more than 5% of its gross sales from similar products.

Item 22 of the FDD outlines restrictive covenants, including non-competition agreements during the term of the franchise agreement. These covenants prevent the franchisee and related parties from having a direct or indirect controlling interest in a Competitive Business, performing services for a Competitive Business, or diverting business or employees from Floyds 99. However, the excerpts provided do not detail the restrictions that apply after the franchise agreement is terminated.

Prospective franchisees should carefully review the full franchise agreement and specifically ask the franchisor about any post-termination restrictions on operating a similar business. Understanding the duration and geographic scope of any non-compete obligations is crucial for planning future business activities after the franchise relationship ends. It is important to consult with a legal professional to fully understand the implications of these clauses.