Is the deferral of the development fee for Floyds 99 franchises in Illinois optional?

According to the 2025 Floyds 99 Franchise Disclosure Document, the deferral of the development fee and initial franchise fee for franchises in Illinois is not optional. The FDD states that payment of these fees is deferred until Floyds 99 completes its initial obligations and the franchisee is open for business.

This deferral is a requirement imposed by the Illinois Attorney General's Office, based on Floyds 99's financial statements. This means that franchisees in Illinois will not have to pay the development fee or initial franchise fee upfront. Instead, these fees are deferred until certain conditions are met, specifically when Floyds 99 has fulfilled its initial obligations and the franchisee's shop is open for business.

This arrangement could be beneficial for prospective franchisees in Illinois as it reduces the initial financial burden. However, it's important to note that Floyds 99 reserves the right to require franchisees to pay up to $25,000 for an opening advertising and marketing campaign for their first shop and each subsequent shop they establish. Franchisees should carefully review the terms and conditions outlined in the franchise agreement and related documents to fully understand their financial obligations and the franchisor's requirements.