Under what conditions will Floyds 99 grant a protected territory?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 12 — TERRITORY (FDD pages 38–41)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, a franchisee is granted a protected territory once they have secured an approved site for their Franchised Location. This protected territory is a geographic area around the barbershop where Floyds 99 will not establish or franchise another party to establish another Floyds 99 shop, provided the franchisee remains in compliance with the Franchise Agreement. However, this territory is not exclusive, meaning franchisees may still face competition from other franchisees, company-owned outlets, or other channels of distribution.
The size and boundaries of the Protected Territory are not fixed and can vary based on market conditions. It is typically defined as a one-mile radius around the Franchised Location, but Floyds 99 may adjust this based on demographics, population density, neighborhood character, pedestrian counts, the number of competitors, site availability, parking, and growth potential. The territory may also be defined by county lines, zip code boundaries, street boundaries, or natural landmarks. This flexibility allows Floyds 99 to tailor the territory to the specific characteristics of each location.
It's important to note that Floyds 99 retains certain rights within and outside the Protected Territory. They can use and license others to use their marks and methods in locations other than the franchisee's Protected Territory and Development Area. They also reserve the right to use their marks to identify products and services distributed through alternative channels, such as the Internet or wholesale distribution. Additionally, Floyds 99 can establish barbershops within Captive Audience Facilities like airports or hospitals, even within a franchisee's Protected Territory, although the franchisee will be given the first opportunity to develop and operate the location.