What factors does Floyds 99 consider when determining a 'reasonable time' for an extension?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise agreed to in writing by the Franchisor and the Franchisee, the Franchisee has fifteen months from the date of this Agreement within which to: (1) secure all necessary financing for the Barbershop; (2) complete the initial training program described in Section 6.1 of this Agreement; (3) select, purchase or lease and build-out the Franchised Location (Franchisee has 270 days to locate an acceptable site and sign a lease on terms acceptable to the Franchisor); (4) purchase
or lease and have installed such décor, furniture, equipment, fixtures, signs, point-of-sale system and software as meets the standards and specifications of the Franchisor; (5) purchase an opening inventory of products and supplies; (6) obtain and provide evidence of insurance as described in Section 22.1 below; (7) hire licensed and qualified employees; and (8) commence operation of the FLOYD'S 99 Shop. The Franchisor will extend the time in which the Franchisee has to commence operations for a reasonable period of time if factors beyond the Franchisee's reasonable control prevent the Franchisee from meeting this development schedule, so long as the Franchisee has made reasonable and continuing efforts to comply with such development obligations and the Franchisee requests, in writing, an extension of time in which to have its FLOYD'S 99 Shop established before such development period lapses.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, when a franchisee needs an extension to commence operations, Floyds 99 will consider whether factors beyond the franchisee's reasonable control are preventing them from meeting the development schedule. Floyds 99 also assesses if the franchisee has made reasonable and continuing efforts to comply with their development obligations. The franchisee must request a written extension before the initial development period lapses.
Specifically, a franchisee has fifteen months from the date of the Franchise Agreement to complete several key steps, including securing financing, completing initial training, selecting and building out the location, purchasing necessary equipment and inventory, obtaining insurance, hiring employees, and commencing operations. The initial site selection must occur within 270 days of the agreement. If the franchisee is unable to meet these deadlines due to circumstances outside their control, an extension may be granted.
This means that if a Floyds 99 franchisee encounters unexpected delays—such as permitting issues, construction delays, or difficulties in securing financing—Floyds 99 may grant an extension, provided the franchisee demonstrates they are actively working to meet their obligations. It is important for prospective franchisees to maintain thorough documentation of their efforts and any challenges encountered, as this will be crucial in requesting and justifying any needed extensions.