Does the Floyds 99 Franchise Agreement specify who is responsible for obtaining the necessary permits and licenses for the Franchised Location?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.8 Permits and Licenses.
The Franchisee agrees to obtain all such permits and certifications as may be required for the lawful construction and operation of the FLOYD'S 99 Shop, together with all certifications from government authorities having jurisdiction over the site, that all requirements for construction and operation have been met, including without limitation, zoning, access, sign, health, safety requirements, building and other required construction permits, licenses to do business and fictitious name registrations, sales tax permits, local barbering and cosmetology permits and ratings and fire clearances.
The Franchisee agrees to obtain all customary contractors' sworn statements and partial and final lien waivers for construction, remodeling, decorating and installation of equipment at the Franchised Location.
The Franchisee shall execute and deliver to the Franchisor the Permit, License and Construction Certification, in the form attached to this Agreement as Exhibit V, to confirm the Franchisee's compliance with the Americans With Disabilities Act and other provisions of this Section 5.8 not later than 30 days prior to the date the Barbershop begins operating.
The Franchisee shall send a copy of its occupancy certificate to the Franchisor and keep copies of all health department, fire department, building department and other similar state and local agency and entity certifications, licenses, and reports of inspections on file and available for review by the Franchisor.
Within 30 days after the Franchisee's Barbershop opens for business, the Franchisee will deliver to the Franchisor a copy of its barbershop license or permit, if applicable.
Simultaneously, the Franchisee shall furnish the Franchisor with the address(es) and phone number for the applicable state and local barbering and cosmetology licensing agency(ies), if any.
- 5.9 Commencement of Operations.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchisee is responsible for obtaining all necessary permits and licenses for the lawful construction and operation of the Floyds 99 shop. This includes certifications from government authorities, zoning, access, sign, health, and safety requirements, building and construction permits, licenses to do business, fictitious name registrations, sales tax permits, local barbering and cosmetology permits and ratings, and fire clearances. The franchisee must also obtain customary contractors' sworn statements and lien waivers for construction and equipment installation.
Furthermore, the Floyds 99 franchisee must execute and deliver a Permit, License, and Construction Certification form to the franchisor, confirming compliance with the Americans With Disabilities Act and other related provisions, no later than 30 days before the barbershop begins operating. The franchisee is also required to send a copy of the occupancy certificate to the franchisor and maintain copies of all health department, fire department, building department, and other state and local agency certifications, licenses, and inspection reports for review by the franchisor.
Within 30 days after the barbershop opens, the franchisee must provide the franchisor with a copy of the barbershop license or permit, if applicable, along with the addresses and phone numbers for the relevant state and local barbering and cosmetology licensing agencies. The franchisee is also responsible for obtaining any and all licenses to carry on business at the Floyds 99 shop and must provide copies of all barbering and cosmetology licenses held by the franchisee and their employees upon request.
This requirement is standard in franchising, as the franchisee is the local business operator and is best positioned to navigate local regulations and requirements. However, the franchisee should maintain open communication with Floyds 99 to ensure compliance with brand standards and any specific requirements the franchisor may have. Failing to obtain the necessary permits and licenses can result in fines, penalties, or even the closure of the business, so it is crucial for the franchisee to fulfill these obligations diligently.