What is the estimated range for professional fees associated with opening a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Signs | $14,000 – $55,000 | As incurred | Before Opening | Other |
| (See Note 4) | Suppliers | |||
| Point-of-Sale System, Software, Office Equipment, Audio/Video, IT and Electronics (See Note 5) | $12,000 – $25,000 | As incurred | Before opening | Other Suppliers |
| Opening Inventory and Supplies (See Note 6) | $8,000 – $14,000 | Lump Sum when ordered | Before Opening | Other Suppliers |
| Security Deposits, Utility Deposits, Business Licenses (See Note 7) | $5,000 – $12,000 | As incurred | Before Opening | Other Suppliers |
| Initial Advertising and Marketing Campaign (See Note 8) | $25,000 | As incurred | Before, at or around opening | Other Suppliers |
| Initial Training: Travel and Living Expenses (See Note 9) | $4,000 – $8,000 | As incurred | Before Opening | Other Suppliers |
| Insurance | $2,000 - $3,000 | As incurred | As incurred | Other |
| (See Note 10) | Suppliers | |||
| Professional Fees | $5,000 - $15,000 | As incurred | As incurred | Other |
| (See Note 11) | Suppliers | |||
| Additional Funds - 3 months (See Note 12) | $40,000 – $71,000 | As incurred | As incurred | Other Suppliers |
| TOTAL ESTIMATED INITIAL INVESTMENT (See Note 13) | $399,500 – $767,500 |
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 estimated range for professional fees is $5,000 to $15,000. These fees cover costs incurred over a three-month period for engaging the services of an attorney and/or accountant. These professionals can assist in evaluating the franchise offering, negotiating the lease, and/or forming an entity to own the franchise.
The actual amount a franchisee spends on professional fees may vary. The FDD indicates that the final cost depends on how much the franchisee relies on their chosen advisors and the hourly rates that these advisors charge. This means that franchisees who handle more tasks themselves or find advisors with lower hourly rates may fall on the lower end of the estimated range.
Prospective Floyds 99 franchisees should consider this wide range and carefully assess their needs for professional guidance. It would be prudent to research and obtain quotes from multiple attorneys and accountants to understand the potential costs involved and to budget accordingly. Understanding the scope of services needed and negotiating rates upfront can help manage these expenses effectively.