What is the reason for the deferral of the development fee for a Floyds 99 franchise?

According to the 2025 Floyds 99 Franchise Disclosure Document, the deferral of the development fee is specifically tied to requirements set by the Illinois Attorney General's Office. The development fee and initial franchise fee are deferred until Floyds 99 completes its initial obligations and the franchisee is open for business. This deferral is based on Floyds 99's financial statements, which have been reviewed by the Illinois Attorney General's Office.

This requirement is outlined in an addendum to the Franchise Disclosure Document specifically for the state of Illinois. This addendum also includes a risk factor on the state cover page, noting that Floyds 99's financial condition, as reflected in its financial statements (see Item 21), raises concerns about the franchisor's ability to provide services and support to franchisees.

For a prospective franchisee, this deferral could be seen as a benefit, as it reduces the upfront financial burden. However, the underlying reason for the deferral—Floyds 99's financial condition—should be carefully considered. It would be prudent for potential franchisees to thoroughly review Item 21 (financial statements) and seek professional financial advice to assess the risks associated with the franchisor's financial stability before investing in a Floyds 99 franchise in Illinois.