To whom is the development fee paid when signing the Development Agreement for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
irectly for any part of the initial investment.
YOUR ESTIMATED INITIAL INVESTMENT- DEVELOPMENT AGREEMENT
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Development |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–24)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the development fee is paid to "Us", meaning the franchisor, upon signing the Development Agreement. This fee ranges from $99,000 to $375,000, depending on whether the agreement is to develop 2 to 10 shops. The development fee is paid in a lump sum.
Floyds 99 collects this fee in exchange for granting the franchisee a protected geographic territory in which to develop their barbershops. This fee compensates Floyds 99 for reserving that territory and foregoing other potential franchisees in the area.
It is important to note that the Development Fee is fully earned by Floyds 99 upon receipt and is non-refundable. This means that even if the franchisee is unable to open the agreed-upon number of locations, they will not receive a refund of the development fee. Prospective franchisees should carefully consider their ability to meet the development schedule before signing a Development Agreement and paying this substantial fee.