Under what conditions is the Floyds 99 Development Fee considered fully earned and non-refundable?

According to the 2025 Floyds 99 Franchise Disclosure Document, the Development Fee is considered fully earned and non-refundable upon receipt by Floyds 99 for the grant of a geographic territory. This territory is reserved for the franchisee's development of Barbershops. The Development Fee compensates Floyds 99 for granting the franchisee the exclusive rights to develop Floyds 99 shops within that specific area.

This means that once a Development Agreement is signed and the fee is paid, the franchisee cannot get a refund of the Development Fee, even if they later decide not to open any or all of the committed Barbershops. The Development Fee varies based on the number of Barbershops the franchisee commits to develop. Specifically, the fee is $49,500 for each of the first and second Barbershops, and $34,500 for the third and each subsequent Barbershop.

Prospective franchisees should carefully consider their ability to develop the agreed-upon number of locations before signing a Development Agreement and paying the associated fees, as these fees are non-refundable. This is a common practice in franchising, as the franchisor incurs costs and sets aside territory based on the agreement. Franchisees should conduct thorough due diligence and seek professional advice to ensure they understand the terms and conditions of the Development Agreement.