How much is the additional fee for each undeveloped Floyds 99 Barbershop?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
be entitled to a refund, return or rebate of any portion of initial franchise fees or Development Fees paid hereunder.
5. DEVELOPMENT OBLIGATIONS
- 5.1 Development Schedule. Acknowledging that time is of the essence, Developer agrees to exercise its development rights according to the development schedule set forth on Exhibit I to this Agreement (the "Development Schedule") and as otherwise set forth herein. Developer must construct, open and maintain in continuous operation a minimum number of FLOYD'S 99 Shops in the Development Area within the time periods mandated by the Development Schedule. Developer's failure to adhere to the Development Schedule (including any extensions approved by Franchisor in writing) will constitute a material breach of this Agreement.
- 5.2 Effect of Failure. Strict compliance with the Development Schedule is of the essence. If Developer fails to construct and open any FLOYD'S 99 Shop or maintain the cumulative number of FLOYD'S 99 Shops open and operating in accordance with the Development Schedule, then Developer will be in default. Any such default constitutes a material breach of this Agreement and Franchisor may, in Franchisor's sole discretion, elect to:
- (a) terminate this Agreement;
- (b) operate or grant franchises to others to operate FLOYD'S 99 Shops within the D
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 FDD, a developer who fails to meet the development schedule may request up to two extensions of six months each. The first extension is provided at no charge. However, the second extension, if granted, requires the developer to pay a non-refundable $5,000 extension fee.
This policy is in place because Floyds 99 considers strict compliance with the development schedule to be essential. Failure to open and maintain the required number of shops can result in the developer being in default of the agreement. This default constitutes a material breach, giving Floyds 99 the right to terminate the agreement, operate or franchise shops to others in the development area, or reduce the development area and schedule.
The $5,000 fee for a second extension is a significant consideration for developers. It underscores the importance of adhering to the agreed-upon development timeline. While extensions are possible, they are not guaranteed and come with potential financial implications. This encourages developers to carefully plan and execute their development strategy to avoid delays and associated costs.