On what is the royalty payment based for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty1 | 6% of Gross Sales | Payable on the day of the week we periodically designate, based on prior week's Gross Sales | Gross Sales include all revenue from the Barbershop, including sales made away from the Barbershop premises. Gross Sales do not include sales taxes and discounts that have been approved by us in advance. Royalties are paid by electronic transfer of funds. |
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the royalty payment is based on 6% of Gross Sales. Gross Sales include all revenue from the Barbershop, including sales made away from the Barbershop premises. However, Gross Sales do not include sales taxes and discounts that have been approved by Floyds 99 in advance.
The royalty is payable on the day of the week that Floyds 99 periodically designates. This payment is based on the prior week's Gross Sales and is paid via electronic transfer of funds.
In the franchise industry, royalties are typically a percentage of gross sales, making Floyds 99's structure fairly standard. Franchisees should ensure they understand what constitutes "Gross Sales" to accurately calculate and remit royalty payments. The electronic transfer requirement is also common, streamlining the payment process.