Is the extension fee for a Floyds 99 development schedule refundable?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
e periods mandated by the Development Schedule. Developer's failure to adhere to the Development Schedule (including any extensions approved by Franchisor in writing) will constitute a material breach of this Agreement.
- 5.2 Effect of Failure. Strict compliance with the Development Schedule is of the essence. If Developer fails to construct and open any FLOYD'S 99 Shop o
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the extension fee for a development schedule is non-refundable. Specifically, a developer who fails to meet the milestones in their development schedule can request up to two extensions, each lasting six months. The first extension is provided at no charge. However, if a second extension is granted, the developer must pay a $5,000 extension fee.
This policy means that a Floyds 99 developer needs to carefully plan their development timeline and budget. If delays occur, the developer can request a first extension without incurring additional costs. However, if further delays necessitate a second extension, the developer will have to pay a $5,000 fee to Floyds 99, which they will not get back, regardless of whether they ultimately fulfill the development schedule.
Franchisors often charge fees for extensions or modifications to development agreements. The non-refundable nature of this fee means that developers should only request a second extension if they are confident they can meet the revised schedule. Otherwise, they risk losing the $5,000 fee without gaining any benefit. This incentivizes developers to adhere to the initial development schedule and to only seek extensions when absolutely necessary and when success is reasonably assured.