Floyd's 99 Barbershop

The technology fee of $125/month is notably lower than the typical range for barbershop franchises ($165-$427.50). What services and systems are included in this fee, and are there any additional technology costs or mandatory software subscriptions not reflected in this figure?

The transfer rate of 17.4% in the past year is more than double the typical range. Can you explain what is driving these high transfers—are these primarily sales to new franchisees, internal family transfers, or other circumstances?

The contract provides a 10-year initial term with no renewal options listed. Can franchisees negotiate renewal terms, and if so, what are the typical conditions and fees for renewal beyond the initial 10 years?

With only 5 renewal conditions listed (below the typical range of 6-9), what specific requirements must franchisees meet to renew their agreement, and are there facility upgrades or remodeling obligations required?

The post-term non-compete clause restricts any hair care business deriving more than 5% of gross sales from haircuts for 2 years within 25 miles. Can you clarify how this 5% threshold is calculated and monitored?

Personal guarantees and spousal signatures are required unconditionally. Are there any circumstances under which these can be released, particularly if a spouse is not actively involved in the business?

The franchisor maintains control over 8 supplier categories with approval rights. Can you provide a detailed list of approved suppliers, the pricing terms compared to retail alternatives, and the margin or rebate structure the franchisor receives?

There was 1 litigation case against the franchisor in the 3-year period. What was the nature of this case, what was the outcome, and how was it resolved?

In 2024, 24 units transferred and 2 ceased operations. Were these transfers predominantly to new franchisees or existing franchisees acquiring additional locations, and what circumstances led to the 2 closures?

The Investment Score is 68, below the typical range for barbershop franchises. Can you itemize all startup costs beyond the $49,500 franchise fee, including equipment, buildout, working capital, and initial inventory estimates?

The Contract Terms Score is 55, notably below the typical category range. Which specific contract provisions contributed to this lower score, and are any of these terms negotiable?

With zero terminations in the system's history, how are underperforming franchisees managed? What triggers a termination for cause, and what is the 10-day or 30-day cure process for monetary and non-monetary defaults?

Territory is protected but not exclusive. Can the franchisor open additional Floyd's 99 locations within or near your territory if minimum performance standards are not met?

What is the average training duration before a new franchise opens, and what ongoing training or operational coaching is included beyond the initial launch phase?

The Support & Training Score is 100, which is exceptionally high. What specific training programs, operational systems, and ongoing support differentiate Floyd's 99 from competitors?

Franchisees must execute a new franchise agreement to renew. Will the renewal terms (royalty rates, fees, restrictions) remain the same as the initial agreement or can they change?

The franchisor requires all owners and spouses to sign personal guarantees. If a spouse divorces or is not involved operationally, can that guarantee be removed or must it remain for the franchise's lifetime?

In the indemnification clause, what types of claims have franchisees been required to indemnify the franchisor for, and are there any insurance or financial limits on this indemnification obligation?

Median gross sales are $954,156, but how many units reported financial data and over what period? Are these sales growing, stable, or declining year-over-year?

The renewal fee is listed as N/A. Is there a separate renewal fee beyond re-executing the agreement, and what capital expenditures are required to remodel or upgrade the location upon renewal?