When is the Step In Management Fee due for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Step In Management Fee1 | Currently 5% of Gross Sales plus expenses | As incurred if we exercise our step in management right | We may step in and manage your FLOYD'S 99 Shop (a) if you are in default and your FLOYD'S 99 Shop is not being operated or managed properly, or if your FLOYD'S 99 Shop is not being operated by a trained Principal Manager, (b) if you are absent or incapacitated by reason of illness or debt, (c) if you fail to pay when due or remove any liens or encumbrances on your FLOYD'S 99 Shop, or (d) if necessary to ensure continued operations as a going concern and to correct operational issues. We only charge a management fee if we manage your FLOYD'S 99 Shop (you must also reimburse us for the expenses, debts and liabilities we |
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the Step In Management Fee is due "as incurred if we exercise our step in management right." This fee, currently set at 5% of Gross Sales plus expenses, is charged if Floyds 99 steps in to manage a franchise location under specific circumstances.
Floyds 99 may exercise its right to step in and manage a shop if the franchisee is in default and the shop isn't being properly managed or operated, or if there isn't a trained Principal Manager in place. Other reasons for intervention include franchisee absence or incapacitation due to illness or debt, failure to pay debts or remove liens on the shop, or if it's necessary to ensure the business continues operating and to correct operational problems.
It's important to note that Floyds 99 only charges this management fee if they actually manage the shop. In addition to the fee, the franchisee is also responsible for reimbursing Floyds 99 for any expenses, debts, and liabilities incurred while managing the shop. This means a franchisee could face significant costs if Floyds 99 needs to take over operations.