Is the development fee for a Floyds 99 Development Agreement refundable?

According to the 2025 Floyds 99 Franchise Disclosure Document, the development fee associated with a Development Agreement is non-refundable. The FDD states that the development fee is fully earned by Floyds 99 upon receipt. This fee grants the developer a geographic territory reserved for their development of Floyds 99 Barbershops.

Specifically, the development fees are $49,500 for each of the first and second Barbershops, and $34,500 for the third and each subsequent Barbershop under a Development Agreement. This fee compensates Floyds 99 for granting the development rights, covering administrative expenses, and accounting for development opportunities that Floyds 99 may have lost or deferred due to the agreement.

Item 23 of the FDD also confirms that all fees are nonrefundable once paid to Floyds 99, and under no circumstances will the developer be entitled to a refund, return, or rebate of any portion of initial franchise fees or Development Fees paid. This policy is standard in franchising, as these fees compensate the franchisor for initial services and territory rights.