What does the Insurance Premiums fee for a Floyds 99 franchise depend on?
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. |
| Insurance Premiums1 | Will vary depending on your location and insurer | As incurred | You must carry insurance and pay the premiums required by your insurer. If you do not pay your premiums, we have the right (but not the obligation) to pay them for you. You must reimburse us for any insurance premiums that we pay on your behalf. |
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the Insurance Premiums fee will vary for franchisees depending on their location and insurer. The premiums are paid as incurred, meaning they are due when the franchisee receives the bill from their insurance provider. Franchisees are required to maintain insurance coverage and pay the associated premiums.
If a Floyds 99 franchisee fails to pay their insurance premiums, the franchisor has the right, but not the obligation, to pay the premiums on the franchisee's behalf. If Floyds 99 does pay the insurance premiums, the franchisee is then obligated to reimburse the franchisor for the amount paid.
This arrangement is fairly standard in franchising, as franchisors want to ensure that all franchise locations maintain adequate insurance coverage to protect the brand and the business from potential liabilities. The franchisee's cost for insurance can fluctuate based on factors like the specific location's risk profile (e.g., crime rates, natural disaster risks) and the coverage limits selected.