What terms govern the renewal term for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ld-over period exceeds 90 days, this Agreement is subject to immediate termination unless applicable law requires a longer period. Upon termination after any hold-over period, the Franchisee and those in active concert with the Franchisee, including family members, officers, directors, partners and managing agents, are subject to the terms of Sections 20.3, 20.4, 22.2 and 22.3 of this Agreement and all other applicable post-termination obligations contained in this Agreement.
19.3 Rights Upon Expiration. At the end of the initial term hereof, the Franchisee shall have the option to renew its franchise rights for an additional term, by acquiring successor franchise rights, if the Franchisor does not exercise its right not to offer a successor franchise in accordance with Section 19.5 below and if the Franchisee:
- a. At least 30 days prior to expiration of the term, executes the form of Franchise Agreement then in use by the Franchisor;
- b. Has substantially complied with all provisions of this Agreement during the current term, including the payment on a timely basis of all Royalties, National Marketing Contributions and other fees due hereunder. "Compliance" shall mean, at a minimum, that the Franchisee has not received any written notification from the Franchisor of breach hereunder more than four times during the term hereof;
- c. Upgrades and/or remodels the FLOYD'S 99 Shop and its operations at the Franchisee's sole expense (the necessity of which shall be in the sole discretion of the Franchisor) to conform with the then current Operations Manual;
d. Executes a general release, in a form satisfactory to the Franchisor, of any and all claims against the Franchisor and its affiliates, and their respective officers, directors, employees and agents arising out of or relating to this Agreement; and
e. Pays a successor franchise fee of 20% of the then current initial franchise fee for a single (first) franchise.
19.4 Exercise of Option for Successor Franchise.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a franchisee has the option to renew their franchise rights for an additional term if they meet certain conditions. The franchisee must acquire successor franchise rights, assuming Floyds 99 does not choose to not offer a successor franchise. To renew, the franchisee must execute the then-current form of the Franchise Agreement at least 30 days before the expiration of the current term.
Additionally, the franchisee must have substantially complied with all provisions of the existing agreement during its term. This includes timely payments of all royalties, national marketing contributions, and other fees. "Compliance" is defined as receiving no more than four written notifications of breach from Floyds 99 during the current term.
Finally, the franchisee must upgrade or remodel the Floyds 99 shop and its operations at their own expense to conform to the standards in the then-current Operations Manual. The necessity of these upgrades or remodels is determined at the sole discretion of Floyds 99. If a franchisee continues to operate the barbershop beyond the term of the agreement, it will be considered a month-to-month basis and subject to termination with a 30-day notice.