What obligations does Floyds 99 have to franchisees for which fees are charged?
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 Development Area;
- (c) grant Developer, upon Developer's reasonable request, up to two (2) extensions of the Development Schedule, each for a period of six (6) months. If Franchisor agrees to provide any extensions, the first extension will be provided at no charge and the second extension, if also provided, will be subject to Developer's payment of a non-refundable $5,000 extension fee; or
- (d) reduce the Development Area and the Development Schedule to a size and magnitude that Franchisor estimates Developer is capable of operating otherwise in accordance with this Agreement.
Any extensions of the time periods to open the Barbershops are subject to Franchisor's extension policy, which may change from time to time and may require Developer to pay additional fees to Franchisor.
5.3 Site Selection. Developer shall not, without the prior written approval of Franchisor, enter into any contract for the purchase or lease of any premises for use as a FLOYD'S 99 Shop. Franchisor will assist Developer in the selection and approval of locations for its Barbershops, although Developer acknowledges that Franchisor has no obligation to select or acquire a location on behalf of Developer. Assistance by Franchisor will consist of the provision of criteria for a satisfactory location and any other assistance set forth in the Franchise Agreement.
6. TRAINING
6.1 Training Program.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 has specific obligations to franchisees in exchange for certain fees. For instance, in the context of development agreements, if a developer fails to meet the development schedule, they may request extensions. Floyds 99 is obligated to grant the first six-month extension at no charge. However, if a second six-month extension is requested and granted, the developer must pay Floyds 99 a non-refundable $5,000 extension fee.
Additionally, Floyds 99 may provide additional assistance to developers concerning site selection, feasibility studies, and lease negotiations beyond the initial training program. If Floyds 99 opts to provide such assistance, they reserve the right to charge the developer for incurred expenses, such as travel and lodging, as well as a fee based on the hourly time spent by Floyds 99 employees. This fee will be assessed according to the prevailing daily or hourly rates set by Floyds 99 for such assistance.
Floyds 99 is also contractually obligated to protect franchisees against claims of infringement or unfair competition regarding the use of their marks. This protection is contingent on the opinion of Floyds 99's legal counsel that the franchisee's rights warrant such protection. Furthermore, in Illinois, the payment of the development fee and initial franchise fee is deferred until Floyds 99 completes its initial obligations and the franchisee is open for business. Floyds 99 also reserves the right to require franchisees in Illinois to pay up to $25,000 for an opening advertising and marketing campaign for their first shop and each subsequent shop they establish.