Floyd s 99 Barbershop
Floyd's 99 Barbershop offers men's grooming services through franchised locations. Known for affordable rates and quick service, it operates in the barbershop and personal care services industry.
Floyd s 99 Barbershop franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single FLOYD'S 99 Shop ranges from $399,500 to $772,500. This amount includes $49,500 that must be paid to the franchisor [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on whether you are opening one or multiple FLOYD'S 99 Shops. For a single shop, the fee is as specified in Exhibit I [p.95]. When developing multiple shops, there's an initial franchise fee of $49,500 for the first and second shops plus a development fee that reduces the initial franchise fee for each additional shop [p.23]. This isn't specified in the excerpts for a single-shop scenario without multiple developments.
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of the franchisee's Gross Sales from their FLOYD'S 99 Shop, as stated in [p.107]. Advertising fees are covered by the National Marketing Fund administered by the company, which includes various marketing activities but does not involve direct payments from franchisees for advertising and marketing, according to [p.36].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is typically 10 years [p.163], and you have the option to renew it for a fee, either by acquiring successor franchise rights or transferring the agreement to a new or existing franchisee [p.244, p.19.3].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you generally cannot transfer ownership of your franchise without good cause as determined by the franchisor [p.5]. Good cause includes but is not limited to specific reasons such as a default by the franchisee [p.5(g)]. This isn't specified in the excerpts for other conditions or requirements for selling or transferring your franchise.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes the failure of the franchisee to comply with any lawful provisions of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity, not exceeding 30 days [p.5]. Additionally, the franchisor has the right to terminate the National Marketing Fund upon 30 days' written notice, though this does not constitute termination of the franchise agreement itself [p.110].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You will have a protected territory around your Franchised Location, but this does not mean no competition from other FLOYD'S 99 Shops is allowed; you may face competition from other franchisees, outlets owned by the company, or competitive brands controlled by them [p.41]. The size and definition of the Protected Territory can vary based on market conditions [p.41].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes approximately 4 hours of home study, four days of classroom instruction at their headquarters, and 7 to 10 days of on-the-job training. This training covers FLOYD'S 99 standards and specifications, trademark protection, and brand consistency [p.39]. Additionally, the franchisor will train replacement or additional managers during the term of the Franchise Agreement but may charge a fee for this service [p.102]. The franchisor also reserves the right to provide training via remote online classes or live video conferences [p.39].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor may provide historical financial performance representations based on data from franchisees' point-of-sale systems. However, they do not make any future financial performance projections and do not authorize their employees or representatives to make such representations [p.52, p.54]. This isn't specified in the excerpts for all scenarios, but it is clear that actual records of existing outlets may be provided if purchasing an existing outlet [p.55].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only services and products as designated by the franchisor, which must meet or exceed the minimum standards set forth in the Operations Manual. You may not offer any other types of services or products without prior written consent from the franchisor [p.104]. Additionally, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than alternatives [p.3].