Floyd's 99 Barbershop Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$399,500 - $762,500
Franchise Fee
$37,125
Min Cash Required
$40,000
Total US Locations
136
Business Summary
FLOYD'S 99 operates retail hair care businesses, also known as FLOYD'S 99 Shops or Barbershops. These establishments offer haircutting, coloring, and barbering services in a modern, stylish environment, provided by licensed professionals. FLOYD'S 99 aims to offer high-quality services at a reasonable price, targeting a market position between discount chains and high-end salons, with a particular appeal to male clients. The shops feature a unique trade dress, including a signature poster wall, and sell professional grooming products, including their own FLOYD'S 99 Grooming line.
Corporate History
The FLOYD'S 99 barbershop concept was initially developed by Floyd's 99, Inc., a Colorado entity established on February 13, 2001. This entity later converted to Floyd's 99 Operating, LLC in February 2005, which then became Floyd's 99 – Colorado, LLC in March 2006. FLOYD'S 99 Franchising, LLC, the franchisor, was officially formed on February 23, 2005, as a Colorado limited liability company. Both the franchisor and Floyd's 99 – Colorado, LLC, which runs company-affiliated barbershops, are part of Floyd's 99 Holdings, LLC, also formed in February 2005. FLOYD'S 99 Franchising, LLC began offering franchises for its barbershops in March 2005.
Financial Overview
Investment Range
$399,500 - $762,500
Franchise Fee (Low)
$37,125
Franchise Fee (High)
$49,500
Minimum Cash Required
$40,000
Royalty %
6%
Marketing %
1.5%
Equipment Costs (Low)
$261,000
Equipment Costs (High)
$565,000
Working Capital
$55,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
FLOYD'S 99 Franchising, LLC receives an unqualified audit opinion, indicating its financial statements are presented fairly. The company operates as a wholly owned subsidiary of Floyd's 99 Holdings, LLC and is jointly and severally liable for a $6.9 million loan held by its parent company, although no circumstances requiring performance on this loan have arisen. Notably, funds owed to FLOYD'S 99 Franchising, LLC from related corporate-owned shops for royalties and marketing fees, which amounted to $890,000 as of December 31, 2023, were treated as non-cash distributions because the company did not expect to receive them in cash.
Financing Details
FLOYD'S 99 Franchising, LLC does not offer any direct or indirect financing to its franchisees, nor does it guarantee any franchisee notes, leases, or other obligations. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
136
Franchised Units
62
Corporate Units
74
Avg Square Footage
1,400
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
FLOYD'S 99 Franchising, LLC is currently involved in one disclosed lawsuit. The case, Matthew Chavez and Nicole Deis v. Roise Barbers, Inc., Jonathan M. Roise, Floyd's 99 Holdings, LLC and Floyd's 99 Franchising, LLC, originated on November 6, 2020. An amended complaint in March 2023 added FLOYD'S 99 Franchising, LLC as a defendant. The plaintiffs, who are former employees of a FLOYD'S 99 franchisee, allege employment and labor violations under California law, asserting that FLOYD'S 99 Franchising, LLC is a joint employer. Floyd's 99 Holdings, LLC has since been removed from the lawsuit. FLOYD'S 99 Franchising, LLC disputes the allegations and is actively defending its position. There is no other litigation required to be disclosed.
Bankruptcy History
FLOYD'S 99 Franchising, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, FLOYD'S 99 franchisees must meet several conditions. They need to sign the franchisor's then-current franchise agreement at least 30 days before their current agreement expires. Franchisees must also have substantially complied with all provisions of their agreement, including making timely payments of all royalties and marketing contributions; this means they should not have received more than four written notices of breach during their term. Additionally, franchisees are required to upgrade and remodel their FLOYD'S 99 Shop and its operations, at their own expense, to meet the franchisor's current brand standards as described in the Operations Manual. They must also sign a general release of any claims against FLOYD'S 99 Franchising, LLC and its affiliates, and pay a successor franchise fee equal to 20% of the initial franchise fee charged for a new, single franchise.
Training & Support Program
Franchisor Assistance
FLOYD'S 99 Franchising, LLC provides franchisees with comprehensive assistance both before and after opening. Before opening, FLOYD'S 99 helps with site selection by providing criteria and consultation, offers design plans and specifications for the build-out, and provides information on selecting approved suppliers. Franchisees attend an initial training program and receive access to the Operations Manual. FLOYD'S 99 also assists with grand opening marketing. After opening, franchisees receive ongoing support including access to advertising and promotional materials, telephone and email consultation for operations and management, and participation in seminars or programs covering new methods, techniques, and products, which may include mandatory annual meetings. FLOYD'S 99 also provides updates to its concept and Licensed Methods, offers training for replacement managers (for a fee), provides updates to the Operations Manual, and conducts inspections to ensure brand standards are met. Additionally, FLOYD'S 99 manages a National Marketing Fund and approves local advertising efforts.
Initial Training Hours
120
Training Location
Corporate headquarters in Greenwood Village, CO, and existing FLOYD'S 99 barbershops, with some components potentially offered remotely online or via live video conference.
Ongoing Support
After opening, FLOYD'S 99 Franchising, LLC provides franchisees with continuous support. This includes access to advertising and promotional materials, as well as consultation via telephone, fax, or email regarding business operations, styling trends, client relations, and product management. FLOYD'S 99 offers seminars and programs on new methods, techniques, equipment, and products, which can include mandatory annual meetings or conventions that franchisees attend at their own cost. Franchisees also receive updates on the FLOYD'S 99 concept and Licensed Methods, and replacement or additional managers can attend the initial training program for a tuition fee. The franchisor provides updates to the Operations Manual and conducts inspections of the barbershops to ensure compliance with brand standards. Franchisees also benefit from the National Marketing Fund and guidance on local advertising. Franchisees or their Principal Managers may also be required to attend national conventions or manager retreats up to twice annually, at their own expense.
Franchise Requirements
Ideal Candidate Profile
FLOYD'S 99 Franchising, LLC seeks qualified individuals or entities, with an emphasis on those capable of developing and operating multiple FLOYD'S 99 Shops. Franchisees are expected to participate personally in the direct operation of their first barbershop and maintain an active role in overseeing the day-to-day operations of subsequent shops.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
protected
Staff Count
11
Territory Size Requirements
Each FLOYD'S 99 Protected Territory is typically defined as a one-mile radius around the Franchised Location, or may be more or less of a radius depending on local demographics. Other designations such as county lines, zip code boundaries, street boundaries, or natural landmarks may also be used. The determination of the territory size depends on various market conditions including population density, neighborhood character, pedestrian counts, competitor presence, site availability, parking, ingress/egress, and growth potential.
Staffing Notes
FLOYD'S 99 requires that franchisees employ at least one person with a barber's license and one person with a cosmetology license at each barbershop. All stylists and barbers must be licensed or certified as required by state and local laws. Franchisees are responsible for all employment decisions, including hiring, training, firing, scheduling, compensation, and discipline. Employee training must ensure compliance with operational standards and all laws. Any employee not satisfactorily completing franchisee training is not permitted to work in the shop. All Principal Managers, employees, and owners must present a professional appearance and wear prescribed clothing while working. The franchisee's Principal Manager is responsible for direct on-premises supervision of second and subsequent shops at all times during operating hours, and the franchisee's principal owner must be actively involved in day-to-day management of the first shop. Shops must maintain sufficient staffing levels to operate at maximum capacity and efficiency.