Under the Floyds 99 franchise agreement, can the franchisee act as an agent of the franchisor?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Floyd's 99 Franchising, LLC ("Franchisor") and Franchisee are parties to a Franchise Agreement | |
|---|---|
| dated, 20 for the development and operation of a FLOYD'S 99 Shop located at | |
| (the "Franchised Location"). In accordance | |
| with Section 5.7 of the Franchise Agreement, Franchisee certifies to the Franchisor that the Franchised | |
| Location complies with all applicable federal, state and local laws, statutes, codes, rules, regulations and | |
| standards including, but not limited to, the federal Americans with Disabilities Act and any similar state or | |
| local laws. The Franchisee has obtained all such permits and certifications as may be required for the lawful | |
| construction and operation of the FLOYD'S 99 Shop, together with all certifications from government | |
| authorities having jurisdiction over the site that all requirements for construction and operation have been | |
| met, including without limitation, zoning, access, sign, health, safety requirements, building and other | |
| required construction permits, licenses to do business and fictitious name registrations, sales tax permits, | |
| and installation of equipment at the Franchised Location. Franchisor may justifiably rely on the information contained in this certification. | health and sanitation permits and ratings and fire clearances. The Franchisee has obtained all customary contractors' sworn statements and partial and final lien waivers for construction, remodeling, decorating The Franchisee acknowle |
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchisee is explicitly defined as an independent contractor. The document states that the franchisee's certification of compliance with laws and regulations does not imply ownership, control, leasing, or operation of the barbershop by Floyds 99. This distinction is crucial because it clarifies that the franchisee operates their business independently and is not an agent of Floyds 99.
This independent contractor status means that the franchisee is responsible for their own business decisions, compliance with local laws, and the overall operation of the Floyds 99 shop. They are not subject to the same level of control as an agent, who would be directly representing the franchisor and acting on their behalf. This arrangement is typical in franchising, where franchisees invest in and manage their own businesses under the franchisor's brand and system.
The franchisee's responsibilities include obtaining all necessary permits and certifications, such as construction permits, licenses to do business, health and sanitation permits, and fire clearances. They must also comply with all applicable federal, state, and local laws, including barbering and cosmetology regulations. This further emphasizes the franchisee's role as an independent operator responsible for their own business's legal and regulatory compliance.
In summary, the Floyds 99 franchise agreement establishes a clear distinction between the franchisor and franchisee, with the franchisee operating as an independent contractor rather than an agent of Floyds 99. This arrangement allows the franchisee to manage their business with a degree of autonomy while adhering to the standards and guidelines set by the franchisor.