Which section of the Floyds 99 Franchise Agreement details the initial franchise fee?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
nnection with the operation of retail hair care businesses, at any location, whether within or outside of the Protected Territory, which businesses are similar to, or different from FLOYD'S 99 Shops, on any terms and conditions as the Franchisor deems advisable.
4. INITIAL FEES
4.1 Initial Franchise Fee. In consideration for the right to develop and operate one FLOYD'S 99 Shop, the Franchisee shall pay to the Franchisor an initial franchise fee in an amount set forth in Exhibit I, due and payable on the date of execution of this Agreement. The Franchisee acknowledges that the initial franchise fee represents payment for the initial grant of the rights to use the Marks and Licensed Methods, that the Franchisor has earned the initial franchise fee upon receipt thereof and that the fee is under no circumstances refundable to the Franchisee after it is paid, unless otherwise specifically set forth in this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the initial franchise fee is detailed in two sections of the Franchise Agreement: Section 4.1 and Exhibit I. Section 4.1 states that the franchisee must pay an initial franchise fee for the right to develop and operate a Floyds 99 shop. This fee is specified in Exhibit I and is due upon the execution of the agreement. Floyds 99 emphasizes that this fee compensates for the initial grant of rights to use their marks and licensed methods.
Floyds 99 also clarifies that the initial franchise fee is earned upon receipt and is generally non-refundable, unless explicitly stated otherwise in the agreement. This means that once the franchisee pays the fee, it is not typically returned, regardless of any subsequent issues or termination of the agreement. This is a standard practice in franchising, as the initial fee covers the franchisor's initial costs and efforts in setting up the franchisee.
Exhibit I to the Franchise Agreement further specifies the exact dollar amount of the initial franchise fee. It also references Section 4.1 of the agreement, reinforcing the connection between the fee amount and the payment terms outlined in the main agreement. Prospective franchisees should carefully review both Section 4.1 and Exhibit I to fully understand the initial franchise fee obligations and payment schedule for a Floyds 99 franchise.