When is the Indemnification Under Franchise Agreement fee due for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| phone lines used in your FLOYD'S 99 Shop. We collect and deliver the amounts charged to the third-party vendor. We do not retain any of the funds you pay for the wired and wireless phone lines used in your Shop. | |||
| Recruiting Platform5 | $1,000 - $1,500 per year if you elect to use texting as an option | As incurred | We make ICIMS (a recruiting software platform) available to you as a tool. There is currently no cost to use ICIMS unless you elect to use texting as an option. If you electing to use texting, ICIMS bills us or our affiliates for this option and we then invoice you for the ICIMS charge. |
| Costs and Attorneys' Fees1 | Will vary depending on nature of your default | As incurred | Payable upon your failure to comply with the Franchise Agreement. |
| Indemnification Under Franchise Agreement1 | Will vary depending on nature of the claim against us | As incurred | You have to reimburse us if we are held liable for claims resulting from your operation of your Barbershop. |
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Indemnification Under Franchise Agreement fee is due 'as incurred.' This means a franchisee will be required to pay this fee when the specific circumstances that trigger it occur.
The amount of this fee will vary depending on the nature of the claim against Floyds 99. As the franchisee, you would have to reimburse Floyds 99 if they are held liable for claims resulting from the operation of your barbershop. This could include legal costs, settlements, or other expenses Floyds 99 incurs due to your barbershop's actions or negligence.
Indemnification clauses are common in franchise agreements to protect the franchisor from liabilities arising from the franchisee's business operations. It is important for a prospective Floyds 99 franchisee to understand the potential situations that could lead to such a claim and to ensure adequate insurance coverage to mitigate this risk. Franchisees should consult with a legal and financial advisor to fully understand their obligations under the indemnification clause.