What is the purpose of the Floyds 99 Development Agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
elopment Fee, Development Schedule, Development Area
- II. Guaranty and Assumption of Developer's Obligations
- III. Statement of Ownership
- IV. Franchise Agreement
- V. Consent to Purchase Rights
FLOYD'S 99 FRANCHISING, LLC DEVELOPMENT AGREEMENT
| THIS DEVELOPMENT AGREEMENT (the "Agreement") is made this day of, | |
|---|---|
| 20, by and between FLOYD'S 99 FRANCHISING, LLC, a Colorado limited liability company, located | |
| at 7900 E. Berry Place, Greenwood Village, CO 80111 (the "Franchisor") and, a | located at |
| (the "Developer"), who, on the basis of the | |
| following understandings and agreements, agree as follows: |
1. PURPOSE
- a) Franchisor has developed methods for establishing and operating retail hair care businesses ("FLOYD'S 99 Shops" or "Barbershops") which use the service mark "FLOYD'S 99" and related service marks, trade names and trademarks ("Marks") and Franchisor's proprietary methods of doing business ("Licensed Methods"). Terms not otherwise defined in this Agreement shall have the meanings as defined in the Franchise Agreement.
- b) Developer would like to use Franchisor's Marks and Licensed Methods in connection with the development of a specific number of Barbershops in the geographic area described below. Franchisor desires to grant Developer the right to establish and operate Barbershops under the terms and conditions which are contained in this Agreement.
2. GRANT OF DEVELOPMENT RIGHTS
- 2.1 Development Area. Franchisor grants to Developer the right to develop and establish Barbershops using Franchisor's Marks and Licensed Methods in the geographic area described in Exhibit I attached hereto (the "Development Area"). Except as provided in Sections 2.2 and 3.1 below and provided that Developer is not in default hereunder, Franchisor shall not establish, nor shall it license any other party to establish, Barbershops using the Marks and Licensed Methods anywhere within the Development Area for so long as this Agreement is in effect.
- 2.2 Franchisor's Reservation of Rights.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the Development Agreement outlines the understanding between Floyds 99 Franchising, LLC and the developer regarding the establishment and operation of multiple Floyds 99 Barbershops within a specific geographic area. Floyds 99 has developed methods for operating retail hair care businesses using its service mark and proprietary methods. The developer desires to use Floyds 99's marks and methods to develop a specific number of Barbershops in a defined area, and Floyds 99 intends to grant the developer the right to do so under the terms and conditions outlined in the agreement.
The Development Agreement grants the developer the right to establish and operate Barbershops using Floyds 99's Marks and Licensed Methods. However, the developer must adhere to a Development Schedule, constructing, opening, and maintaining a minimum number of Floyds 99 Shops in the Development Area within specified time periods. Failure to comply with the Development Schedule constitutes a material breach of the agreement.
If the developer fails to meet the Development Schedule, Floyds 99 has the option to terminate the agreement, operate or grant franchises to others within the Development Area, grant extensions of the Development Schedule (potentially with a $5,000 extension fee for a second extension), or reduce the Development Area and Schedule to a manageable size. This ensures Floyds 99 can maintain its brand presence and development pace even if the developer underperforms. The agreement emphasizes that time is of the essence, and strict compliance with the Development Schedule is critical.