Why is the development fee deferred for Floyds 99 franchises in Illinois?

According to the 2025 Floyds 99 Franchise Disclosure Document, the payment of the development fee and initial franchise fee is deferred for franchises in Illinois until Floyds 99 completes its initial obligations and the franchisee is open for business. This deferral is mandated by the Illinois Attorney General's Office and is based on Floyds 99's financial statements.

This requirement suggests that the Illinois Attorney General's Office had concerns about the financial stability of Floyds 99 at the time the FDD was issued. By deferring the fee payment, the franchisee is protected from paying fees upfront to a franchisor that may not be able to fulfill its obligations. This is a significant benefit for prospective franchisees in Illinois, as it reduces their initial financial risk.

It is important for potential franchisees to carefully review Item 21 of the FDD, which contains Floyds 99's financial statements, and to seek professional financial advice before making any investment decisions. While the deferral of fees provides some protection, it does not eliminate all financial risks associated with investing in a Floyds 99 franchise. Franchisees should also be aware that Floyds 99 reserves the right to require a payment of up to $25,000 for an opening advertising and marketing campaign for the first shop and each subsequent shop that the Developer establishes.