Under what condition can the right to use the Marks be granted to a Floyds 99 Developer?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
7.1 Marks. Notwithstanding any provision to the contrary under this Agreement, this Agreement does not grant Developer any right to use the Marks. The right to use the Marks may only be granted by the terms of a Franchise Agreement. Developer acknowledges and agrees that, until a Franchise Agreement has been entered into for a specific Barbershop, Developer will not have, nor be entitled to receive, any of the rights, powers and privileges granted by the Franchise Agreement, including, without limitation, the right to use the Marks. Developer may not use any Mark as part of any corporate or trade name or as Developer's primary business name or with any prefix, suffix or other modifying words, terms, designs or symbols, or in any modified forms. Developer may not use any Mark in connection with any business or activity other than the business conducted by Developer pursuant to the Franchise Agreements nor in any other manner not explicitly authorized in writing by Franchisor.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a developer is not automatically granted the right to use the Marks (service mark "FLOYD'S 99" and related service marks, trade names and trademarks) under the Development Agreement. The right to use the Marks is specifically granted only through the terms of a separate Franchise Agreement. Until a Franchise Agreement is in place for a specific Barbershop, the developer does not have the right to use the Marks.
This means that while a developer has the right to develop and establish Barbershops in a specific geographic area, they cannot use the Floyds 99 Marks for any location until a Franchise Agreement is signed for that specific barbershop. This includes using the Marks in any corporate or trade name, as their primary business name, or in any modified form.
This distinction is important for prospective developers as it clarifies that the Development Agreement solely grants development rights, not franchise rights. The actual right to operate a Floyds 99 branded barbershop and use its Marks comes into effect only after a separate Franchise Agreement is executed for each location. Therefore, developers need to factor in the process and requirements for obtaining individual Franchise Agreements as part of their development plans.