How are Floyds 99 royalty payments remitted to the franchisor?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, royalty payments are remitted weekly to the Franchisor via electronic funds transfer. The amount due is 6% of the Gross Sales from the previous week. Floyds 99 designates a specific day of the week for these transfers, which they will communicate to the franchisee.
To facilitate these electronic transfers, franchisees must complete an Authorization Agreement for Preauthorized Payments, included as Exhibit IV to the Franchise Agreement, at least 30 days before their barbershop opens. This agreement allows Floyds 99 to electronically debit the franchisee's bank account for royalties, national marketing contributions, and any other overdue amounts.
Floyds 99 retains the right to allocate payments from franchisees towards any outstanding debts, including royalties, national marketing contributions, product purchases, or interest. They can also offset any amounts owed to the franchisee against the franchisee's debts to Floyds 99. This level of control over payment allocation is common in franchising, ensuring the franchisor can prioritize debt recovery.