What is the Step In Management Fee for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Phones5 | party vendors | charged | provider for the wired and wireless |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| phone lines used in your FLOYD'S 99 Shop. We collect and deliver the amounts charged to the third-party vendor. We do not retain any of the funds you pay for the wired and wireless phone lines used in your Shop. | |||
| Recruiting Platform5 | $1,000 - $1,500 per year if you elect to use texting as an option | As incurred | We make ICIMS (a recruiting software platform) available to you as a tool. There is currently no cost to use ICIMS unless you elect to use texting as an option. If you electing to use texting, ICIMS bills us or our affiliates for this option and we then invoice you for the ICIMS charge. |
| Costs and Attorneys' Fees1 | Will vary depending on nature of your default | As incurred | Payable upon your failure to comply with the Franchise Agreement. |
| Indemnification Under Franchise Agreement1 | Will vary depending on nature of the claim against us | As incurred | You have to reimburse us if we are held liable for claims resulting from your operation of your Barbershop. |
| Insurance Premiums1 | Will vary depending on your location and insurer | As incurred | You must carry insurance and pay the premiums required by your insurer. If you do not pay your premiums, we have the right (but not the obligation) to pay them for you. You must reimburse us for any insurance premiums that we pay on your behalf. |
| Training for New Principal Managers/Operators1 | Currently, tuition is $3,500; plus expenses to attend (your living expenses will vary) | As incurred | Payable if you are a new Principal Manager/Operator. We require all Principal Managers/Operators to complete our initial training program for a total tuition of $3,500. |
| 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. |
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 currently 5% of Gross Sales plus expenses. This fee is incurred if Floyds 99 exercises its right to step in and manage a franchisee's shop.
Floyds 99 may step in to manage a shop under specific circumstances, such as if the franchisee is in default and the shop is not being properly operated, if a trained Principal Manager is not present, or if the franchisee is absent due to illness or debt. They may also step in if the franchisee fails to pay or removes liens on the shop, or if it's necessary to ensure continued operations and correct operational issues.
In addition to the 5% of Gross Sales, the franchisee is responsible for reimbursing Floyds 99 for any expenses, debts, and liabilities incurred while managing the shop. This means that the total cost of the Step In Management Fee can potentially be higher than just the stated percentage of gross sales, depending on the specific circumstances and expenses incurred during the management period. This is a crucial consideration for prospective franchisees as it represents a significant potential cost in the event of operational difficulties or default.