When is the Floyds 99 Development Fee considered fully earned?

According to Floyds 99's 2025 Franchise Disclosure Document, the Development Fee is considered fully earned upon receipt by Floyds 99 for granting a geographic territory reserved for the franchisee's development of Barbershops. This fee is non-refundable.

The Development Fee varies depending on the number of Barbershops the franchisee commits to develop under the Development Agreement. For the first and second Barbershops, the fee is $49,500 each. For the third and each subsequent Barbershop, the fee is $34,500.

Prospective franchisees should understand that this fee is compensation for the exclusive rights to develop Floyds 99 locations within a specific area. Because the fee is earned upon receipt and is non-refundable, franchisees bear the risk if they are unable to open the agreed-upon number of locations. This is a common practice in franchising, as the franchisor incurs costs and loses other opportunities by granting exclusive development rights.