For Floyds 99 franchises in Illinois, when is the development fee paid?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Payment of the development fee and initial franchise fee is deferred until such time as the franchisor completes its initial obligations and franchisee is open for business. The deferral of the development fee and initial franchise fee is required by the Illinois Attorney General's Office based on our financial statements.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the standard policy is that the Development Fee is paid concurrently with the execution of the Development Agreement. The Development Fee is $49,500 for each of the first and second Floyds 99 Shops to be developed, plus $34,500 for each of the remaining Barbershops to be developed.
However, for Floyds 99 franchises in Illinois, there is an addendum that modifies this payment schedule. The payment of the development fee is deferred until Floyds 99 completes its initial obligations and the franchisee is open for business. This deferral is mandated by the Illinois Attorney General's Office based on Floyds 99's financial statements.
This means that prospective Floyds 99 franchisees in Illinois do not have to pay the development fee upfront. Instead, they can delay payment until the franchisor has fulfilled its initial obligations and the barbershop is ready to open. This arrangement could be more favorable for franchisees as it reduces their initial financial burden and aligns the payment with the progress of the franchise setup.