What triggers the start of the post-termination non-compete period 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, the post-termination obligations, including the non-compete agreement, are triggered when the Franchise Agreement is terminated. This can occur at the end of the initial term, after any hold-over period, or due to termination by the Franchisor.
The agreement lasts for a period of 10 years from the date of the agreement, but can be terminated sooner. If a franchisee continues to operate the barbershop beyond the term of the agreement, it will be considered a month-to-month basis and subject to termination with a 30-day notice. If the hold-over period exceeds 90 days, the agreement is subject to immediate termination.
Upon termination or expiration of the Franchise Agreement, the franchisee is subject to post-termination obligations, including the non-compete terms outlined in Sections 20.3, 20.4, 22.2, and 22.3 of the agreement. These obligations apply to the franchisee and those in active concert with the franchisee, including family members, officers, directors, partners, and managing agents.