Under what condition is the payment of the development fee deferred for a Floyds 99 franchise?

According to the 2025 Floyds 99 Franchise Disclosure Document, in the state of Illinois, the payment of the development fee and initial franchise fee is deferred until Floyds 99 completes its initial obligations and the franchisee is open for business. This deferral is mandated by the Illinois Attorney General's Office based on Floyds 99's financial statements.

This condition is specific to Illinois and is based on the franchisor's financial condition as reviewed by the Illinois Attorney General. The FDD includes an addendum for Illinois franchisees that highlights this deferral and also notes that the franchisor's financial condition calls into question their ability to provide services and support to franchisees.

For prospective franchisees in Illinois, this deferral offers a significant benefit by reducing the upfront financial burden. However, the disclosure regarding Floyds 99's financial condition should prompt careful consideration and due diligence. Potential franchisees should seek clarification from Floyds 99 regarding their financial stability and ability to support new locations. They should also consult with financial and legal advisors to assess the risks and benefits of investing in a Floyds 99 franchise in Illinois.