Are the initial franchise, renewal, and transfer fees for a Floyds 99 franchise refundable?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
is reference
incorporated herein, is true, complete, accurate and not misleading, and, in accordance with the information contained in the Statement of Ownership, the controlling ownership of the FLOYD'S 99 developer business is held by Developer. Developer shall promptly provide Franchisor with a written notification if the information contained in the Statement of Ownership changes at any time during the term of this Agreement and shall comply with the applicable transfer provisions contained in Article 8 herein and in the Franchise Agreement. In addition, if Developer is an entity, all of the owners of Developer shall sign the Guaranty and Assumption of Developer's Obligations attached hereto as Exhibit II.
4. INITIAL FRANCHISE AND DEVELOPMENT FEES
4.1 Fees. Concurrently with the execution of this Agreement, Franchisor acknowledges that in consideration of the development rights gr
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, initial franchise and development fees are generally nonrefundable. Specifically, the FDD states that once these fees are paid to Floyds 99, they are considered fully earned by the franchisor.
This means that a prospective Floyds 99 developer should be certain of their decision before paying these fees, as there are no circumstances under which a refund, return, or rebate will be granted. This is a standard practice in franchising, as these initial fees cover the franchisor's costs associated with granting the development rights, administrative expenses, and lost opportunities due to the developer's exclusive area.
However, there is an addendum for Illinois that payment of the development fee and initial franchise fee is deferred until such time as Floyds 99 completes its initial obligations and the franchisee is open for business. This deferral is required by the Illinois Attorney General's Office based on their financial statements. The FDD excerpts provided do not address the refundability of renewal or transfer fees.