Diesel_Barbershop 2025 Franchise FAQ - FDD Ninja

Question 1

What is the condition for CPR to make the selection of the mediator for Diesel Barbershop?

Accepted Answer

Franchisor and Developer shall select the mediator from the CPR Panel Of Neutrals (unless the Parties mutually agree to the selection of another mediator).

If the Parties cannot agree on the selection of a mediator, CPR shall make the selection.

Source: Item 23 — RECEIPTS (FDD pages 62–252)

Question 2

Under what circumstances is Diesel Barbershop required to compensate a franchisee for inventory, supplies, equipment, fixtures, and furnishings upon non-renewal of the franchise?

Accepted Answer

A provision that permits a franchisor to refuse to renew a franchise without fairly compensating the franchisee by repurchase or other means for the fair market value at the time of expiration of the franchisee's inventory, supplies, equipment, fixtures and furnishings.

Personalized materials which have no value to the franchisor and inventory, supplies, equipment, fixtures and furnishings not reasonably required in the conduct of the franchise business are not subject to compensation.

This subsection applies only if: (i) the term of the franchise is less than 5 years, and (ii) the franchisee is prohibited by the franchise or other agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype, advertising or other commercial symbol in the same area subsequent to the expiration of the franchise or the franchisee does not receive at least 6 months advance notice of franchisor's intent not to renew the franchise.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 45–54)

Question 3

For Diesel Barbershop, how is the average revenue calculated for a given subset of Franchisee Locations?

Accepted Answer

- 2. Average Revenue. The average revenue for a given subset of Franchisee Locations is calculated by taking the sum of the Total Revenue of each Franchisee Location in that subset and dividing that figure by the total number of Franchisee Locations comprising that subset. Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 54–58)

Question 4

As of what dates are the balance sheets presented in the Diesel Barbershop financial statements?

Accepted Answer

We have audited the accompanying financial statements of Diesel Barbershop Franchising, LLC, which comprise the balance sheets as of November 30, 2024 and 2023, and the related statements of operations, members' deficit, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Diesel Barbershop Franchising, LLC as of November 30, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)

Question 5

What must be done with furniture, fixtures, and decor items associated with Diesel Barbershop after termination?

Accepted Answer

- alter the Premises in accordance with Section 16.2.
- Alteration of Premises. If this Agreement expires or is terminated for any reason or if the Premises ever ceases to be used for the Franchisee's Franchised Business, then within thirty (30) days after the date of the expiration or termination of this Agreement or the date on which the Premises is no longer used for the Franchisee's Franchised Business (whichever is applicable), the Franchisee will, at its expense, alter, modify and change both the exterior and interior appearance of the Premises so that it will be clearly distinguished from the standard appearance of a Franchised Business if required by Franchisor. At a minimum, such changes and modifications to the Premises will include, but not be limited to: (a) repainting and, where applicable, recovering both the exterior and interior walls of the Premises with entirely different colors, including removing any distinctive colors and designs from the walls; (b) removing all furniture, fixtures and other decor items associated with Franchised Businesses and replacing them with other decor items not of the general type and appearance customarily used in Franchised Businesses; (c) removing all exterior and interior Diesel Barbershop signs; and (d) immediately discontinuing use of the approved wall decor items and window decals, and refraining from using any items which may be confusingly similar to those used in Franchised Businesses. Franchisee agrees that Franchisor or a designated agent may enter

![](_page_134_Picture_0.jpeg)

upon the Premises at any time to make such changes at Franchisee's sole risk and expense and without liability for trespass.

- Prohibited Activity.

Source: Item 22 — CONTRACTS (FDD pages 61–62)

Question 6

What must be done with Diesel Barbershop signs, both exterior and interior, after termination?

Accepted Answer

If this Agreement expires or is terminated for any reason or if the Premises ever ceases to be used for the Franchisee's Franchised Business, then within thirty (30) days after the date of the expiration or termination of this Agreement or the date on which the Premises is no longer used for the Franchisee's Franchised Business (whichever is applicable), the Franchisee will, at its expense, alter, modify and change both the exterior and interior appearance of the Premises so that it will be clearly distinguished from the standard appearance of a Franchised Business if required by Franchisor.

At a minimum, such changes and modifications to the Premises will include, but not be limited to: (a) repainting and, where applicable, recovering both the exterior and interior walls of the Premises with entirely different colors, including removing any distinctive colors and designs from the walls; (b) removing all furniture, fixtures and other decor items associated with Franchised Businesses and replacing them with other decor items not of the general type and appearance customarily used in Franchised Businesses; (c) removing all exterior and interior Diesel Barbershop signs; and (d) immediately discontinuing use of the approved wall decor items and window decals, and refraining from using any items which may be confusingly similar to those used in Franchised Businesses.

Source: Item 22 — CONTRACTS (FDD pages 61–62)

Question 7

What is the estimated cost of purchasing the current Diesel Barbershop Computer System if the franchisee does not already have compliant hardware and software?

Accepted Answer

onnection. (Franchise Agreement, Sections 6.4(a)).

If you already have computer hardware and/or software that meet our then-current standards for a Computer System and/or Required Software, then you may use these items in connection with your Franchised Business provided you obtain our approval. Otherwise, we estimate the costs of purchasing our current Computer System to be between \$2,000 and \$2,700. In addition, you will be required to pay (a) our Approved Supplier for the POS software license fee (currently, \$250/month per Barbershop plus \$0.03 per text and a \$1.15 per month for the SMS phone number), and (b) us our then-current Technology Fee (currently, \$300/month per Barbershop plus \$5.00 per month for each additional email associated with your Barbershop).

You must keep your Computer System in good maintenance and repair and install such additions, changes, modifications, substitutions, and/or replacements to the Computer System or Required Software as we direct from time to time in writing.

We estimate that you may spend between \$300 and \$500 annually on maintenance and support contracts associated with the Computer System, but we do not require you to enter into these kinds of agreements unless necessary to ensure the POS Software integrates all updates. This range also includes potential upgrades to the Computer System hardware as of the Issue Date.

You must have the components necessary to ensure that the entire Premises of the Franchised Business has access to the Internet via Wi-Fi connection. We may require that: (i) you comply with our standards and specifications for Internet access and speed; and (ii) the Computer System be programmed to automatically transmit data and reports about the operation of the Franchised Business to us. We will also have the right to, at any time without notice, electronically and independently connect with your Computer System to monitor or retrieve data stored on the Computer System (or for any other purpose we deem necessary). There are no contractual limitations on our right to access the information and data on any component of your Computer System. We may also require you to use a Computer System and/or related software that is administered through us and provides us with automatic a

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–37)

Question 8

In the event of a dispute, what is the limit of recovery for the Diesel Barbershop Developer?

Accepted Answer

- 11.16 Waiver of Punitive Damages.

Developer hereby waives to the fullest extent permitted by law, any right to or claim for any punitive, exemplary, incidental, indirect, special or consequential damages (including, without limitation, lost profits) against Franchisor or its Affiliate arising out of any cause whatsoever (whether such cause be based in contract, negligence, strict liability, other tort or otherwise) and agrees that in the event of a dispute, that Developer and Guarantor's recovery is limited to actual damages.

If any other term of this Agreement is found or determined to be unconscionable or unenforceable for any reason, the foregoing provisions will continue in full force and effect, including, without limitation, the waiver of any

![](_page_191_Picture_0.jpeg)

right to claim any consequential damages. Nothing in this Section or any other provision of this Agreement will be construed to prevent Franchisor or its Affiliate from claiming and obtaining expectation or consequential damages, for the balance of the term of this Agreement if it is terminated due to Developer's default, which the Parties agree and acknowledge Franchisor may claim under this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 62–252)

Question 9

What must I do with fictitious or assumed names related to my Diesel Barbershop franchise after termination?

Accepted Answer

Upon termination or expiration of this Agreement, of if the Franchisor acquires the Franchisee's Franchised Business pursuant to this Agreement, the Franchisor will have the absolute right to notify the telephone company, social media companies, state registration agency, and all listing agencies ( collectively, "Companies") of the termination or expiration of the Franchisee's right to use all telephone numbers, facsimile numbers, Proprietary Marks, trade names and any classified or other directory listings for the Franchised Business and to authorize the Companies to transfer to the Franchisor or its assignee all telephone numbers, facsimile numbers, social media accounts, trade names pertaining to the Franchised Business or containing the Proprietary Marks and directory listings of the Franchisee's Franchised Business.

Source: Item 22 — CONTRACTS (FDD pages 61–62)

Question 10

Does the Diesel Barbershop franchise agreement require arbitration or litigation to be conducted outside of the franchisee's state?

Accepted Answer

STATE SPECIFIC ADDENDA

![](_page_225_Picture_0.jpeg)

#### ADDITIONAL STATE DISCLOSURES

If the franchise is located in or if franchisee is a resident of any of the following states, then the designated provisions in the Franchise Disclosure Document ("Disclosure Document") and Franchise Agreement will be amended as follows:

#### ILLINOIS

#### ADDENDUM TO DISCLOSURE DOCUMENT

- 1. The "Summary" section of Item 17(v), entitled Choice of forum, is deleted in its entirety.
- 2. The "Summary" section of Item 17(w), entitled Choice of law, is deleted and replaced with the following: Illinois law applies.
- 2. Illinois law governs the agreement(s) between the parties to this franchise.
- 3. Any provision in a franchise agreement that designates jurisdiction or venue in a forum outside of Illinois is void, provided that arbitration may take place outside of Illinois. 815 ILCS 705/4 (West 2010)
- 4. Any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of Illinois is void. 815 ILCS 705/41 (West 2010)
- 5. Your rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 45–54)

Question 11

What is the 'Franchised Business' referring to in the Diesel Barbershop agreement?

Accepted Answer

- B.

Franchisor owns, operates, and grants franchises for the establishment and operation of a business that operates a business that features haircutting and grooming, coloring, and barbering services provided to clients by a staff of trained and independently-licensed professionals, as well as related services and products that Franchisor authorizes (collectively, the "Approved Products and Services"), from a unique retail setting under the mark "DIESEL BARBERSHOP" and other proprietary marks, trade dress, symbols and logos using the System, Confidential Information and Trade Secrets ("Franchised Business").

Source: Item 22 — CONTRACTS (FDD pages 61–62)

Question 12

If Diesel Barbershop advances arbitration costs, does it waive its right to recover those costs?

Accepted Answer

Franchisor reserves the right, but has no obligation, to advance Developer share of the costs of any arbitration proceeding in order for such arbitration proceeding to take place and by doing so shall not be deemed to have waived or relinquished its right to seek the recovery of those costs in accordance with this Section 11.9.

Source: Item 23 — RECEIPTS (FDD pages 62–252)

Question 13

What is the purpose of Diesel Barbershop's right to approve certain matters, inspect the franchised business, and enforce its rights?

Accepted Answer

- (ii) Franchisor's retention and exercise of the right to approve certain matters, to inspect the Franchised Business and its operation and to enforce its rights exists only to the extent necessary to protect Franchisor's interest in the System for the benefit of Franchisor, its Affiliates, other franchisees and licensees.

Neither the retention nor the exercise of such right is for the purpose of establishing any control, or the duty to take control, of Franchisee's Franchised Business nor will they be construed to do so.

Source: Item 22 — CONTRACTS (FDD pages 61–62)

Question 14

What specific arbitration rules will be used by the American Arbitration Association for Diesel Barbershop?

Accepted Answer

The arbitration proceeding will be before one neutral arbitrator with contract experience.

Franchisor and Developer shall select the arbitrator from a panel provided by the AAA (unless the Parties mutually agree to the selection of another arbitrator).

If the Parties cannot agree on the selection of an arbitrator, the arbitrator will be appointed by the AAA in accordance with the

![](_page_188_Picture_0.jpeg)

current or successor commercial arbitration rules of the AAA.

Except as otherwise provided in this Agreement, the arbitration shall be conducted in accordance with the then current or successor commercial arbitration rules of the AAA.

The arbitrator will agree to follow and apply the express provisions of this Agreement in determining the arbitration award.

The arbitrator will not extend or modify or suspend any of the terms of the Agreement or the reasonable standards of business performance and operation established by Franchisor.

The arbitrator shall be bound to apply the applicable law and shall not rule inconsistently with applicable law.

Franchisor and Developer agree that, in any arbitration proceeding, each party must submit or file any claim which would constitute a compulsory counterclaim (as defined by the federal rules of civil procedure) within the same proceeding as the claim to which it relates.

Any claim which is not submitted or filed as required is forever barred.

Each party will, upon the written request of the other party, promptly provide the other with copies of documents relevant to the issues raised by any claim or counterclaim on which the producing party may rely in support of or in opposition to any claim or defense.

Any dispute regarding discovery, or the relevance or scope thereof, shall be determined by the arbitrator, which determination shall be conclusive.

All discovery shall be completed within sixty (60) days following the appointment of the arbitrator.

At the request of a party, the arbitrator shall have the discretion to order examination by deposition of witnesses to the extent the arbitrator deems such additional discovery relevant and appropriate.

Depositions shall be limited to a maximum of five (5) per party and shall be held within thirty (30) days of making of a request.

Additional depositions may be scheduled only with the permission of the arbitrator and for good cause shown.

Each deposition shall be limited to a maximum of six (6) hours duration.

All objections are reserved for the arbitration hearing except for objections based on privilege and proprietary or confidential information.

Franchisor and Developer agree that the arbitration shall be conducted on an individual, not a class-wide basis and that any arbitration proceeding between Franchisor and Developer shall not be commenced, consolidated or conducted with any other arbitration proceeding.

The arbitrator has no authority to rule on the enforceability of the ban on class-action arbitration.

Any ruling by the arbitrator authorizing arbitration to be conducted on a class-wide basis is subject to appeal to a court of competent jurisdiction.

The arbitrator will not have the authority to declare any Proprietary Mark generic, descriptive or otherwise invalid.

The arbitrator may not consider any settlement discussions or offers that might have been made by Developer or Franchisor.

The award shall be made within nine (9) months of the filing of the notice of intention to arbitrate, and the arbitrator shall agree to comply with this schedule before accepting appointment.

This time limit may be extended by the Parties or arbitrator if necessary.

The award shall include findings of fact and conclusions of law.

Either party may apply to the court having jurisdiction for an order confirming or enforcing the award.

The arbitrator shall have the right to award or include in the award any relief which he/she deems proper in the circumstances consistent with Section 11, including money damages (with interest on unpaid amounts from date due), specific performance, injunctive and declaratory relief, and legal fees and costs in accordance with Section 11.9 hereof, provided that the arbitrator shall not have the authority to award exemplary, punitive or treble damages

Source: Item 23 — RECEIPTS (FDD pages 62–252)

Question 15

After termination of my Diesel Barbershop franchise, what must I immediately do regarding callers requesting information about the business?

Accepted Answer

- immediately notify all callers, including current and prospective customers, requesting information about Franchisee's former Franchised Business that such inquiries should be made to another phone number as specified by Franchisor;

Source: Item 22 — CONTRACTS (FDD pages 61–62)

Question 16

What types of taxes is a Diesel Barbershop franchisee responsible for paying?

Accepted Answer

the taxing authorities when due, in addition to the amounts due to Franchisor. Franchisee is solely responsible for paying any withholding, federal and state income taxes, social security taxes, sales taxes and any other taxes incurred on behalf of Franchisee, Franchisee's owners, contractors, employees or Franchisee's Franchised Business. Franchisee will reimburse Franchisor, its Affiliates and designees, promptly and when due, the amount of all sales taxes, use taxes, personal property taxes, and similar taxes imposed upon, required to be collected by, or paid by Franchisor, its Affiliates or designees, on account of services or goods furnished to Franchisee by Franchisor, its Affiliates or designees, through sale, lease or otherwise or on account of collection by Franchisor, its Affiliates or designees, on any payments or fees made by Franchisee to Franchisor, its Affiliates or designees required under the terms of this Agreement.
- Security Interest. Franchisee hereby grants to Franchisor a security interest in all of Franchisee's interests in the real estate where the Franchised Business is located (if Franchisee purchases its Premises), as well as all improvements to that real estate. Franchisee further grants to Franchisor a security interest in all furniture, furnishings, equipment, fixtures, inventory, and supplies located at or used in connection with the Franchised Business, whether now or hereafter leased or acquired, together with all attachments, accessions, accessories, additions, substitutions, and replacements therefore, as well as all cash and non-cash proceeds derived from insurance, the disposition of any such collateral to secure payment and performance of all debts, liabilities, and obligations of any kind of Franchisee to Franchisor under this Agreement, whenever and however incurred, any promissory note given by Franchisee to Franchisor, or any other agreement between them. Franchisee hereby authorizes Franchisor to file and record all financing statements, financing statement amendments, continuation financing statements, fixture filings, and other documents necessary or desirable to evidence, perfect, and continue the priority of the security interests granted herein. Franchisee agrees and understands that it must promptly execute and deliver any such documents to Franchisor upon request.

Source: Item 22 — CONTRACTS (FDD pages 61–62)

Diesel_Barbershop 2025 FDD FAQ