For a Floyds 99 Development Agreement, what is the estimated total initial investment range, including the development fee and other expenditures for the first shop?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
irectly for any part of the initial investment.
YOUR ESTIMATED INITIAL INVESTMENT- DEVELOPMENT AGREEMENT
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Development Fee (See Note 1) | $99,000 to $375,000 (2 – 10 Shops) | Lump Sum | Upon signing the Development Agreement | Us |
| Other Expenditures for first FLOYD'S 99 Shop (less initial franchise fee for first FLOYD'S 99 Shop, which is included in the Development Fee) | $350,000 to $718,000 | As disclosed in first table under Item 7 | As disclosed in first table under Item 7 | As disclosed in first table under Item 7 |
| (See Note 2) TOTAL ESTIMATED INITIAL INVESTMENT (See Note 3) | $449,000 to $1,093,000 |
Explanatory Notes
- Development Fee. The chart provides an estimate of your initial investment to open your first FLOYD'S 99 Shop assuming you sign a Development Agreement to develop 2 (low estimate) or 10 (high estimate) Barbershops. When you sign a Development Agreement to open multiple Barbershops, you must pay a Development Fee which will vary based on the number of Barbershops you commit to develop. The Development Fees for Barbershops under a Development Agreement are: (a) $49,500 for each of the first and second Barbershops, and (b) $34,500 for the third and each subsequent Barbershop. The Development Fee is fully earned by us on receipt for the grant of a geographic territory reserved for your development of Barbershops and is non-refundable. The low estimate assumes you will enter into a Development Agreement requiring you to develop 2 Barbershops and the high estimate assumes you will enter into a Development Agreement to develop 10 Barbershops.
- Other Fees.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–24)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the estimated total initial investment for a Development Agreement ranges from $449,000 to $1,093,000. This includes the development fee, which ranges from $99,000 to $375,000 for developing 2 to 10 shops, and other expenditures for the first Floyds 99 shop, estimated between $350,000 and $718,000. The development fees are $49,500 for each of the first two barbershops and $34,500 for the third and each subsequent barbershop.
The development fee is paid in a lump sum upon signing the Development Agreement and is considered fully earned by Floyds 99 upon receipt, as it grants the franchisee a geographic territory for development. This fee is non-refundable. The other expenditures for the first shop are paid as disclosed in the initial investment table within Item 7 of the FDD.
The lower end of the total investment assumes a development agreement for 2 barbershops, while the higher end assumes an agreement for 10 shops. Prospective franchisees should carefully consider the number of shops they commit to developing, as this significantly impacts the initial investment through the development fee. It's also important to note that the initial franchise fee for the first shop is included within the development fee, meaning franchisees do not pay a separate initial franchise fee for their first location under a development agreement.
These figures are estimates, and actual costs may vary based on factors such as location, construction costs, and the franchisee's ability to negotiate favorable lease terms. Floyds 99 does not offer financing for any part of the initial investment, so franchisees must secure their own funding. Reviewing these figures with a business advisor is recommended before making any decision to purchase a franchise.