How often is the Royalty fee payable for a Floyds 99 franchise?

According to Floyds 99's 2025 Franchise Disclosure Document, the royalty fee is 6% of gross sales. This fee is payable on the day of the week that Floyds 99 periodically designates. The due date is based on the prior week's gross sales, and royalties are paid via electronic transfer of funds. Gross sales include all revenue from the Barbershop, including sales made away from the Barbershop premises, but do not include sales taxes and discounts that have been approved by Floyds 99 in advance.

In practical terms, this means a Floyds 99 franchisee must remit 6% of their total revenue (excluding sales tax and approved discounts) to Floyds 99 each week. The specific day of the week for payment is determined by Floyds 99. Franchisees need to ensure they have a system in place to accurately track gross sales on a weekly basis and make timely electronic payments to avoid potential late fees or penalties.

It is common in the franchise industry for royalty fees to be a percentage of gross sales, typically ranging from 4% to 8%. The weekly payment schedule, while not universal, is also not uncommon, as it allows the franchisor to receive a steady stream of revenue and monitor the franchisee's performance more closely. Franchisees should be aware of this ongoing financial obligation and factor it into their business planning and cash flow management.

Prospective franchisees should confirm with Floyds 99 what day of the week royalty payments are due to ensure they can meet this obligation consistently. Understanding the specific procedures for electronic fund transfers and any potential penalties for late payments is also crucial for maintaining a good relationship with the franchisor and avoiding unnecessary financial burdens.