Is the development fee for a Floyds 99 Development Agreement refundable, and when is it considered fully earned?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
sed in this Item.
ITEM 5. INITIAL FEES
Development Agreement
Qualified applicants will have the right to purchase franchise rights to develop and open multiple Barbershops by signing a Development Agreement together with the Franchise Agreement for the first FLOYD'S 99 Shop to be developed. When you sign the Development Agreement and first Franchise Agreement, you must pay us 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 terri
Source: Item 5 — INITIAL FEES (FDD page 14)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the development fee associated with a Development Agreement is non-refundable. The development fee is considered fully earned by Floyds 99 upon receipt. This fee compensates Floyds 99 for granting a specific geographic territory to the developer for establishing multiple Floyds 99 Barbershops.
For each of the first and second barbershops, the development fee is $49,500. For the third and each subsequent barbershop, the fee is $34,500. This fee structure incentivizes developers to commit to opening multiple locations within their designated area.
Because the development fee is earned upon receipt and is non-refundable, a prospective Floyds 99 developer should carefully evaluate their ability to meet the development schedule and financial obligations outlined in the Development Agreement. Failure to adhere to the development schedule can result in termination of the agreement, and the developer will not be entitled to a refund of any portion of the development fees paid.