What is the initial term length of the Floyds 99 Franchise Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
19. TERM AND EXPIRATION
- 19.1 Term. The term of this Agreement is for a period of 10 years from the date of this Agreement, unless sooner terminated as provided herein.
- 19.2 Continuation. If for any reason, the Franchisee continues to operate the Barbershop beyond the term of this Agreement or any subsequent renewal period, it shall be deemed to be on a month-to-month basis under the terms of this Agreement and subject to termination upon 30 days' notice or as required by law. If said hold-over period exceeds 90 days, this Agreement is subject to immediate termination unless applicable law requires a longer period. Upon termination after any hold-over period, the Franchisee and those in active concert with the Franchisee, including family members, officers, directors, partners and managing agents, are subject to the terms of Sections 20.3, 20.4, 22.2 and 22.3 of this Agreement and all other applicable post-termination obligations contained in this Agreement.
- 19.3 Rights Upon Expiration. At the end of the initial term hereof, the Franchisee shall have the option to renew its franchise rights for an additional term, by acquiring successor franchise rights, if the Franchisor does not exercise its right not to offer a successor franchise in accordance with Section 19.5 below and if the Franchisee:
- a. At least 30 days prior to expiration of the term, executes the form of Franchise Agreement then in use by the Franchisor;
- b. Has substantially complied with all provisions of this Agreement during the current term, including the payment on a timely basis of all Royalties, National Marketing Contributions and other fees due hereunder. "Compliance" shall mean, at a minimum, that the Franchisee has not received any written notification from the Franchisor of breach hereunder more than four times during the term hereof;
- c. Upgrades and/or remodels the FLOYD'S 99 Shop and its operations at the Franchisee's sole expense (the necessity of which shall be in the sole discretion of the Franchisor) to conform with the then current Operations Manual;
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the initial term of the Franchise Agreement is 10 years from the date of the agreement, unless it is terminated earlier as specified in the agreement.
If a franchisee continues to operate the barbershop beyond the initial 10-year term or any subsequent renewal period, the agreement transitions to a month-to-month basis. This arrangement is subject to termination with a 30-day notice, or as required by law. Should this hold-over period exceed 90 days, the Franchise Agreement is subject to immediate termination, unless a longer period is mandated by applicable law.
At the end of the initial term, franchisees have the option to renew their franchise rights for an additional term, provided Floyds 99 does not choose to not offer a successor franchise. To renew, the franchisee must execute the then-current Franchise Agreement form at least 30 days before the term's expiration, substantially comply with all agreement provisions during the current term (including timely payments), and upgrade or remodel the Floyds 99 shop to meet the current operational standards, at the franchisee's expense, as determined by Floyds 99.