How are royalty payments sent to Floyds 99?
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 made weekly via electronic funds transfer. The franchisee is required to send royalty payments to Floyds 99 on a designated day of the week, based on the gross sales from the preceding week.
To facilitate these electronic transfers, the franchisee must execute an Authorization Agreement for Preauthorized Payments, included as Exhibit IV in the franchise agreement, at least 30 days before the 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 outstanding amounts owed to Floyds 99.
This electronic funds transfer system ensures timely and consistent royalty payments to Floyds 99. It also provides a mechanism for Floyds 99 to collect any delinquent amounts owed by the franchisee, streamlining the payment process and reducing administrative burdens for both parties. Franchisees should be aware of the importance of maintaining sufficient funds in their designated bank account to avoid any issues with royalty payments.