When are Floyds 99 royalty payments due to the franchisor?
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 Floyds 99's 2025 Franchise Disclosure Document, franchisees are required to pay a weekly royalty fee. This royalty is calculated as 6% of the total Gross Sales generated from or through their Floyds 99 shop. Gross Sales includes all sales of services, products, or merchandise, whether for cash or credit, and revenues from vending machines and promotional items.
The royalty payments must be made weekly via electronic funds transfer on a designated day set by Floyds 99. This designated day is referred to as the "Due Date." The royalty payment is based on Gross Sales from the immediately preceding week.
To facilitate these electronic transfers, franchisees must complete an Authorization Agreement for Preauthorized Payments at least 30 days before their barbershop opens. This agreement allows Floyds 99 to electronically transfer funds from the franchisee's bank account to cover royalties, national marketing contributions, and any other past due amounts.