When are the payments due for the point-of-sale system, software, office equipment, audio/video, IT and electronics for a Floyds 99 Barbershop?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
t for certain customized software and related hardware that you will use in every Barbershop. Unless otherwise specified, one half of the costs for your point-of-sale system, software, office equipment, audio/video, IT and electronics are due when you order these items and the other half of these costs are due upon delivery of these items to you. Approximately two months before your Barbershop opens, you will pay a $299 set up fee to our designated supplier to configure your POS system at your Barbershop. Any custom reports or other enhancements you request from the POS System provider (which are specific to your Shop) are at your expense and would raise the estimates provided in this item. Additionally, you will pay a license fee to our designated supplier in the amount of $2,700 (annual license fee if paid up front) or $250 per month. None of these payments are refundable once paid.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–24)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, payments for the point-of-sale (POS) system, software, office equipment, audio/video, IT, and electronics are split into two installments. Unless otherwise specified, one half of the costs are due when the franchisee orders these items, and the remaining half is due upon delivery. This applies to the computerized POS system, customized software, and related hardware necessary for operating a Floyds 99 Barbershop. The FDD indicates that these payments are made to 'Other Suppliers'.
In addition to the split payments for the system itself, Floyds 99 franchisees must also pay a $299 set-up fee to the designated supplier approximately two months before the Barbershop opens. This fee covers the configuration of the POS system. Furthermore, there is a license fee payable to the designated supplier, amounting to $2,700 annually if paid upfront, or $250 per month. These payments are non-refundable once paid.
The FDD also states that the estimated initial investment for the point-of-sale system, software, office equipment, audio/video, IT, and electronics ranges from $12,000 to $25,000. This range accounts for potential variations in the chosen system and any additional POS terminals or credit card terminals the franchisee might opt to include. Custom reports or enhancements requested from the POS system provider will incur additional expenses for the franchisee.
Prospective franchisees should carefully consider these payment terms and factor them into their initial investment calculations. Understanding the payment schedule and the non-refundable nature of certain fees is crucial for managing cash flow during the start-up phase. It is also advisable to clarify with Floyds 99 and the designated suppliers any specific payment terms or potential variations based on the chosen equipment and software.