How are 'Wholesale Orders' defined in the Floyds 99 Franchise Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee shall offer all types of services and products, including specific brands, as from time to time may be prescribed by the Franchisor and shall refrain from offering any other types of services or products, including specific brands, or operating or engaging in any other type of business or profession, from or through the FLOYD'S 99 Shop that are not authorized by the Franchisor, including, without limitation, filling "wholesale orders," defined below, or any off-premises, Internet, catalog or mail order sales, without the prior written consent of the Franchisor. "Wholesale Orders" are defined as those orders or sales where the principal purpose of the purchase is for resale, not use, or any sale other than those sold over the counter at a price other than that price charged to the general public; provided, however, that volume discounted sales made on the premises at the Franchised Location to a single purchaser, not for resale, shall not be considered a "wholesale order."
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, "wholesale orders" are defined as sales where the primary intent of the purchaser is resale rather than personal use. This also includes any sales that are not made over the counter at the standard price offered to the general public.
However, the definition of "wholesale orders" excludes volume discounted sales made on the premises of the franchised location to a single purchaser, provided that the purchase is not for resale purposes. This exception allows Floyds 99 franchisees to offer discounts for large purchases made by individual customers without those sales being classified as wholesale.
The Floyds 99 franchise agreement stipulates that franchisees are prohibited from fulfilling wholesale orders without obtaining prior written consent from the franchisor. This restriction ensures that franchisees focus on serving individual customers at the retail level and prevents them from engaging in activities that could compete with or undermine the franchisor's established distribution channels or pricing strategies. This also allows Floyds 99 to maintain control over its brand and distribution methods.