How often are royalty payments due for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1 Weekly Royalty. The Franchisee shall pay to the Franchisor a weekly royalty ("Royalty") equal to 6% of the total amount of its "Gross Sales" (defined in Section 12.2 below), generated from or through its FLOYD'S 99 Shop.
- 12.2 Gross Sales. "Gross Sales" shall mean and include the aggregate amount of all sales of services, products or merchandise of every kind or nature sold from, at or in connection with or arising out of the operation or conduct of business at the Barbershop or, if the Franchisee is an entity, arising out of the operation or conduct of any business by such entity, including sales made at or away from the Barbershop, whether for cash or credit, and any revenues from vending machines and from sales of promotional items such as caps, T-shirts, jackets, and similar items, less merchandise returns for which refunds are made, and less service refunds, provided that no refund shall exceed the sales price, but excluding all: (i) federal, state or municipal sales or service taxes collected from clients and paid to the appropriate taxing authority; (ii) discounts that have been approved in advance by the Franchisor in writing; and (iii) other exclusions as may be authorized in writing by the Franchisor.
- 12.3 Royalty Payments. Royalty payments shall be made weekly and sent to the Franchisor by electronic funds transfer on the day of the week the Franchisor shall designate from time to time ("Due Date") based on Gross Sales for the immediately preceding week. No later than 30 days prior to the opening of the Barbershop, the Franchisee shall execute an Authorization Agreement for Preauthorized Payments in the form attached to this Agreement as Exhibit IV to allow the electronic transfer of funds from the Franchisee's bank account to the Franchisor's bank account of delinquent Royalties, National Marketing Contributions and other past due amounts owed by the Franchisee to the Franchisor arising from or relating
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees are required to make royalty payments on a weekly basis. The royalty is 6% of the Gross Sales generated from the Floyds 99 shop. These payments are to be sent to Floyds 99 via electronic funds transfer on a designated day of the week.
Gross Sales include all sales of services, products, or merchandise, whether for cash or credit, and revenues from vending machines and promotional items. Exclusions from Gross Sales include federal, state, or municipal sales or service taxes collected from clients and paid to the appropriate taxing authority, discounts approved in advance by Floyds 99 in writing, and other exclusions authorized in writing by Floyds 99.
Prior to opening the barbershop, franchisees must complete an Authorization Agreement for Preauthorized Payments to facilitate the electronic transfer of funds. This agreement allows Floyds 99 to transfer funds from the franchisee's bank account to cover delinquent royalties, national marketing contributions, and other past due amounts.