Does the Floyds 99 Development Agreement specify any financial thresholds related to the development of Barbershops?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
be entitled to a refund, return or rebate of any portion of initial franchise fees or Development Fees paid hereunder.
5. DEVELOPMENT OBLIGATIONS
- 5.1 Development Schedule. Acknowledging that time is of the essence, Developer agrees to exercise its development rights according to the development schedule set forth on Exhibit I to this Agreement (the "Development Schedule") and as otherwise set forth herein. Developer must construct, open and maintain in continuous operation a minimum number of FLOYD'S 99 Shops in the Development Area within the time periods mandated by the Development Schedule. Developer's failure to adhere to the Development Schedule (including any extensions approved by Franchisor in writing) will constitute a material breach of this Agreement.
- 5.2 Effect of Failure. Strict compliance with the Development Schedule is of the essence. If Developer fails to construct and open any FLOYD'S 99 Shop or maintain the cumulative number of FLOYD'S 99 Shops open and operating in accordance with the Development Schedule, then Developer will be in default. Any such default constitutes a material
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Development Agreement outlines financial implications related to adhering to the development schedule. Specifically, if a developer fails to meet the mandated timelines for opening Floyds 99 shops, they risk being in default of the agreement.
While the initial extension to the development schedule is provided at no charge, any subsequent extension requires the developer to pay a non-refundable $5,000 extension fee. This fee serves as a financial threshold, incentivizing developers to adhere to the agreed-upon schedule and ensuring the timely expansion of Floyds 99 shops within the designated development area.
Failure to comply with the development schedule can lead to more severe consequences, including termination of the agreement or reduction of the development area. The franchisor also retains the right to operate or grant franchises to others within the original development area, further emphasizing the importance of meeting the stipulated development obligations. This financial aspect of the development agreement is crucial for prospective franchisees to consider, as it directly impacts their investment and expansion plans.