Is the territory granted to a Floyds 99 franchisee exclusive?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| 80 | |1 Or via remote online classroom or live video conference.
2 If you are opening your first Barbershop, we provide this training.
ITEM 12. TERRITORY
Your franchise is for the specific site that we approve. You must locate an acceptable site within the non-exclusive Designated Area that we specify. The site will be added to the Franchise Agreement once we accept it and you secure it. Your Designated Area is not exclusive and is only intended to give you a general indication of the area within which you may locate the site for the Franchised Location.
When you have secured the site for your Franchised Location you will be granted a protected territory which will consist of a geographic area around your Franchised Location, within which we will not establish and operate, or franchise anyone else to establish and operate, other FLOYD'S 99 Shops, as long as you are in compliance with the Franchise Agreement and subject to our reservation of rights, described below. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we or our affiliates own, or from other channels of distribution or competitive brands that we control. This geographic area ("Protected Territory") around your Barbershop will typically be defined either as a one-mile radius around your Franchised Location, or more or less of a radius depending on the demographics in your area, or by county lines, zip code boundaries, street boundaries, natural landmarks, or similar designations. The placement of a FLOYD'S 99 Shop and the designation of a Protected Territory by us depend on various market conditions around a proposed Franchised Location, including density of population, character of the neighborhood, pedestrian counts, number of competitors in the market, site availability, parking and ingress and egress and growth potential. The determination of your Protected Territory for your Barbershop and any future Barbershop developed under a Development Agreement will be made using our then-current standards and criteria for determining Protected Territories. You may advertise your FLOYD'S 99 Shop in any geographic area, and you may serve all clients seeking your Barbershop services, but you may not solicit or accept "wholesale orders" for hair care products, sell products or services off-premises, by mail order or through catalogs or the Internet, or transship or reship products.
You may not change the location of your Franchised Location or your Protected Territory without our prior written consent, which consent will not be unreasonably withheld. If, during the term of the Franchise Agreement, you wish to relocate your FLOYD'S 99 Shop, or if the FLOYD'S 99 Shop is damaged or destroyed and cannot be repaired within 60 days, you must submit to us in writing the materials we require to consider your relocation request, including information concerning the proposed new location for the FLOYD'S 99 Shop. You must also meet certain other requirements, such as being in compliance with the Franchise Agreement, the location meets our then-current requirements for a FLOYD'S 99 Shop and is located within your Protected Territory, payment of our relocation fee, and you must sign our thencurrent form of Franchise Agreement. We will use our then-current criteria in reviewing a proposed new location for your FLOYD'S 99 Shop. If we permit you to relocate, you will not pay a new initial franchise fee when you sign the new Franchise Agreement but you must pay our then-current relocation fee for our expenses related to reviewing your relocation request.
Except for your right of first refusal to develop and operate locations in Captive Audience Facilities, described below, and your rights to develop under the Development Agreement, described below, you have no option, right of first refusal or similar contractual right to acquire additional FLOYD'S 99 franchises.
Under the terms of the Development Agreement, we grant to you the right to establish, according to a schedule, a minimum number of FLOYD'S 99 Shops within a larger geographical territory ("Development Area"). The Development Area is not an exclusive territory and is subject to our reservation of rights described below. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. A Development Area is usually defined by political boundaries such as
street boundaries, a city, county or state limits or by other reasonable boundaries. The number of FLOYD'S 99 Shops to be developed may be adjusted depending on demographics and other characteristics of a Development Area, including population density, income and other characteristics of the surrounding area, natural boundaries, extent of competition and whether the proposed Development Area is urban, suburban or rural in nature.
Source: Item 12 — TERRITORY (FDD pages 38–41)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the territory granted to franchisees is generally not exclusive. While franchisees are granted a "Protected Territory" around their specific location, Floyds 99 retains significant rights to establish other outlets and channels of distribution, including through other franchisees, company-owned outlets, and alternative distribution methods. This means a franchisee could face competition from other Floyds 99 locations or related businesses, even within their general market area. The Protected Territory is intended to prevent Floyds 99 from opening another franchised location in close proximity to the franchisee's shop.
Specifically, the FDD states that the Designated Area, within which a franchisee may locate a site, is non-exclusive. Once a site is secured and approved, a Protected Territory is granted, typically defined as a one-mile radius around the franchised location, though this can vary based on demographics. However, even within this Protected Territory, Floyds 99 reserves the right to operate or franchise barbershops within "Captive Audience Facilities" like airports, hospitals, and college campuses, although the franchisee has a right of first refusal to develop these locations.
Floyds 99 also retains the right to use and license its marks and methods outside the Protected Territory and, in some cases, even within it for Captive Audience Facilities. They can also use different proprietary marks or methods to sell similar products and services through alternative channels like the Internet or other types of stores. While Floyds 99 states they have no present plans to establish other related franchises or company-owned businesses selling similar products or services under a different name or trademark, they reserve the right to do so. This lack of exclusivity and the reserved rights could impact a franchisee's potential market share and revenue, making it crucial to carefully evaluate the location and competitive landscape before investing in a Floyds 99 franchise.