Which sections of the Floyds 99 Franchise Agreement and Development Agreement address pre-opening purchases/leases?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
or our designee will:
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- We will provide you with a map or description of your Designated Area, within which you must locate your Franchised Location. If you enter into a Development Agreement with us, we will provide you with a map or description of the Development Area within which you must locate a specified number of Franchised Locations in accordance with a Development Schedule that we determine. (Section 3.1 of the Franchise Agreement; Sections 2.1 and 5.1 of the Development Agreement)
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- Assist you in locating the site for your FLOYD'S 99 Shop facility (and the site for any future FLOYD'S 99 Shop developed under a Development Agreement) by providing you with our thencurrent written criteria for a Barbershop location and consult with you about possible locations. We do not generally own the premises for your Barbershop and lease it to you. You must locate and obtain our approval of the Franchised Location and the lease for your location before you sign it. No contractual limit exists on the time it takes us to approve or disapprove your proposed location. However, we typically take 15 to 30 days to approve or disapprove your proposed location, and we will extend your development deadlines when circumstances beyond your reasonable control delay the site selection and approval process. (Sections 5.1, 5.2 and 7.1(b) of the Franchise Agreement and Section 5.3 of the Development Agreement)
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- Provide you with design plans and specifications for your site and our standards and specifications for the leasehold improvements, signs, color, decor, products, inventory, equipment, POS system, computer hardware and software and displays. We must approve your construction plans and specifications before construction begins. You are responsible for the cost of plans prepared by an approved contractor and by your local architect, for any second review of your construction plans by us, if necessary, and for the cost of construction. (Sections 5.3, 5.4, 5.5, 5.6, 5.7 and 7.1(c) of the Franchise Agreement)
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- Provide you with information regarding the selection of suppliers of equipment, items and materials used, and hair care products and merchandise offered for sale, in connection with your Barbershop. We will make available to you a list of designated and approved suppliers of such equipment, items, materials, products and merchandise and, if available, a description of any regional or central purchase and supply agreements offered by such approved suppliers for the benefit of our franchisees. (Sections 7.1(d) and 14.5 of the Franchise Agreement)
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- Before the Barbershop's opening, we furnish an initial training program described below in this Item. (Sections 6.1, 6.2 and 7.1(a) of the Franchise Agreement and Section 6.1 of the Development Agreement)
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- Give you access to an electronic copy of our confidential and proprietary Operations Manual, covering the specifications, standards and operating procedures that we require in a FLOYD'S 99 Shop and information about your obligations in this regard. (Section 8.1 of the Franchise Agreement)
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- Provide assistance in the grand opening and grand opening marketing of your FLOYD'S 99 Shop location. (Section 7.1(f) of the Franchise Agreement)
The above assistance does not apply to a renewal franchisee.
Continuing Assistance.
During the operation of your FLOYD'S 99 Shop, we or our designee will:
- Provide you access to advertising and promotional materials that we may, but are not required to, develop.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 29–30)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, several sections within both the Franchise Agreement and the Development Agreement address pre-opening purchases and leases. Specifically, Section 3.1 of the Franchise Agreement and Sections 2.1 and 5.1 of the Development Agreement outline the franchisee's responsibility to locate their franchised location within a designated area. Sections 5.1, 5.2, and 7.1(b) of the Franchise Agreement, along with Section 5.3 of the Development Agreement, discuss the site selection process, including Floyds 99's approval of the location and lease terms.
Furthermore, Section 5.3, 5.4, 5.5, 5.6, 5.7, and 7.1(c) of the Franchise Agreement cover design plans, specifications, and standards for leasehold improvements, signs, decor, products, inventory, equipment, and displays. Section 7.1(d) and 14.5 of the Franchise Agreement address the selection of suppliers for equipment, items, materials, and hair care products. Finally, Section 5.9 of the Franchise Agreement details the franchisee's obligations to secure financing, complete training, select and build out the franchised location, purchase or lease necessary items, and purchase an opening inventory within a specified timeframe.
For a prospective Floyds 99 franchisee, understanding these sections is crucial as they detail the financial and operational commitments required before opening. Franchisees must secure appropriate locations, manage build-out costs, and adhere to Floyds 99's standards for all purchases and leases. The FDD also highlights the importance of timely compliance with these obligations, noting potential extensions under certain conditions. Therefore, carefully reviewing these sections and seeking clarification from Floyds 99 on any ambiguous points is advisable for anyone considering investing in a Floyds 99 franchise.