Floyd's 99 Barbershop has carved out a distinctive niche in the booming haircare industry, sitting between budget haircut chains and high-end salons to deliver premium cuts at accessible prices. With more than 150 locations across the United States and a passionate customer base, Floyd's 99 represents one of the most compelling franchise opportunities in the personal care sector today. But like any franchise investment, getting started requires capital, and understanding your financing options is critical to success.
Whether you're exploring your first franchise or expanding an existing portfolio, this guide covers everything you need to know about securing a Floyd's 99 Barbershop franchise loan, from initial investment requirements to working capital strategies and how Crestmont Capital helps entrepreneurs like you access fast, flexible funding.
Before you can apply for a franchise loan, you need a clear picture of what you're investing in. Floyd's 99 Barbershop operates a proven model that has attracted loyal customers across more than a dozen states. The brand targets a demographic that wants quality above budget cuts but doesn't want to pay salon prices, and that sweet spot has proven remarkably durable.
According to publicly available franchise disclosure information, the total initial investment for a Floyd's 99 Barbershop franchise typically ranges from approximately $259,500 to $617,500. This wide range reflects differences in real estate costs, market conditions, buildout complexity, and other local factors. Key components of the investment include:
Like most franchise systems, Floyd's 99 charges ongoing royalties, typically around 5% to 6% of gross revenues, plus a national marketing fund contribution of approximately 1% to 2%. These ongoing fees are important to factor into your cash flow projections when securing financing.
Prospective franchisees should obtain and review the Franchise Disclosure Document (FDD) from Floyd's 99 for the most accurate and current investment figures before making any financial commitments.
Crestmont Capital offers fast, flexible funding for franchise investors. Get approved in as little as 24 hours with loans up to $5 million.
Apply Now - It's Free to CheckMost franchisees do not pay for a Floyd's 99 location entirely out of pocket. Instead, they combine personal capital with financing to cover the total investment. Here are the primary financing pathways available to aspiring Floyd's 99 franchise owners.
The SBA 7(a) loan program is one of the most popular financing tools for franchise buyers. These government-backed loans offer favorable terms, including lower down payments (often 10% to 20%), longer repayment periods (up to 10 years for working capital, up to 25 years for real estate), and competitive interest rates.
For a Floyd's 99 franchise, an SBA 7(a) loan can cover:
According to the SBA's official lending programs page, the 7(a) program supports small businesses across eligible industries, and barbershop franchises are typically well-positioned to qualify.
If you plan to purchase the commercial real estate for your Floyd's 99 location rather than lease, the SBA 504 program is worth exploring. These loans are designed specifically for real estate and major equipment purchases, offering fixed rates and terms up to 25 years. The 504 structure typically requires a 10% borrower contribution, with the SBA covering 40% and a conventional lender funding the remaining 50%.
Barbershop equipment is a major component of your Floyd's 99 investment. Barber chairs alone can cost $500 to $2,000 or more per unit, and a full salon buildout with multiple stations can quickly reach $100,000 or higher. Equipment financing allows you to spread these costs over 24 to 72 months, preserving working capital for operations.
Equipment loans for barbershops typically offer:
A business line of credit gives you revolving access to funds you can draw as needed. For franchise owners, a line of credit is invaluable during the first 6 to 18 months when cash flow can be unpredictable. You only pay interest on what you borrow, making it a flexible safety net.
Short-term business loans can bridge gaps while longer-term financing is arranged or during periods of rapid expansion. Terms typically range from 3 to 24 months, with fast approval and funding timelines that make them ideal for time-sensitive opportunities.
For comprehensive franchise financing that covers buildout, equipment, and working capital under a single loan structure, long-term business loans offer repayment terms of 3 to 10 years with predictable monthly payments. These are particularly useful for investors who want a simpler, consolidated debt structure.
Given the popularity of SBA financing in the franchise world, it's worth examining the details more closely. The SBA maintains a Franchise Registry that lists brands whose FDDs have been pre-reviewed, which can streamline the loan process for registered brands. Franchisees should ask Floyd's 99 corporate whether the brand is on the SBA Franchise Registry before beginning the loan application process.
To qualify for an SBA loan as a Floyd's 99 franchisee, lenders typically look for:
According to CNBC's small business coverage, SBA loan approval rates have been relatively favorable for franchise businesses with proven track records, as lenders view franchises as lower-risk compared to independent startups.
A Floyd's 99 Barbershop is as much about the experience as the haircut, and that means investing in quality equipment. The brand's aesthetic and service standards require specific furnishings and tools that create the distinctive Floyd's environment.
Many franchise investors are tempted to pay cash for equipment to avoid interest charges, but this approach often backfires. Equipment financing preserves your working capital for operational needs like payroll, rent, and marketing during the critical early months when revenue is still ramping up. Additionally, equipment loan interest may be tax-deductible and the equipment may qualify for Section 179 expensing. Consult your tax advisor for details specific to your situation.
Whether you're applying through Crestmont Capital, a bank, or another lender, certain qualification factors will determine your loan eligibility and terms. Understanding these upfront helps you prepare a stronger application.
Your personal credit score plays a significant role in franchise financing approvals, particularly for SBA loans. Most conventional lenders want to see a score of 680 or above. Alternative lenders may work with scores as low as 600, though at higher interest rates. If your score needs improvement, bad credit business loan options may still be available to get you started.
For new franchisees who haven't yet opened their Floyd's 99 location, this is technically a startup loan situation. Many lenders have higher requirements for startups versus established businesses. SBA loans typically work well for franchise startups because the franchise brand history substitutes for individual business history.
Lenders generally require franchisees to put in some of their own money. For SBA financing, this is typically 10% to 20% of the total project. Having personal liquid capital of at least $60,000 to $120,000 demonstrates financial commitment and reduces lender risk.
A well-prepared business plan significantly improves your approval odds. Your plan should include:
Lenders may require collateral to secure the loan. For franchise loans, collateral often includes the equipment and fixtures being financed, plus potentially a personal guarantee from the franchise owner. Some lenders may also require a lien on personal real estate.
Don't let slow loan approvals delay your Floyd's 99 franchise plans. Crestmont Capital offers:
At Crestmont Capital, we specialize in small business loans for entrepreneurs who need fast, flexible access to capital. We understand the unique challenges franchise investors face, including tight timelines driven by landlord commitments, buildout schedules, and franchise agreement deadlines.
Depending on your needs and qualifications, Crestmont Capital can provide:
If you have concerns about credit requirements, Crestmont also offers business loans with no credit check options for qualified applicants, helping more entrepreneurs access capital regardless of their credit history.
Understanding how other franchise investors have financed their Floyd's 99 locations can help you think through your own financing strategy. Here are three illustrative scenarios based on common financing approaches.
Profile: Maria is a 38-year-old marketing executive with a 740 credit score, $80,000 in liquid savings, and no prior business ownership experience. She's been selected for a Floyd's 99 franchise in a growing suburban market.
Total Investment Need: $420,000 (including buildout, equipment, franchise fee, and working capital)
Financing Strategy:
Outcome: Maria's strong credit and meaningful down payment made her an attractive SBA borrower. She secured funding within 6 weeks and opened her location on schedule. By month 18, her location was generating $85,000 in monthly revenue with strong profit margins after debt service.
Profile: James owns a successful Floyd's 99 location that has been open for three years and generates consistent revenue. He wants to open a second unit in a nearby market but doesn't want to wait months for SBA approval.
Total Investment Need: $350,000 for the new location
Financing Strategy:
Outcome: James was able to move quickly on a favorable lease and open his second location without the extended SBA timeline. The faster funding allowed him to capitalize on a prime retail space that would otherwise have gone to a competitor. His second unit was profitable within 14 months.
Profile: David has a 610 credit score due to some past financial challenges but has $45,000 saved and strong management experience from 8 years in the restaurant industry. He's passionate about the Floyd's 99 model.
Total Investment Need: $290,000
Financing Strategy:
Outcome: David worked with Crestmont Capital to identify alternative financing products that didn't rely solely on credit score. His operational experience and detailed business plan helped make his case. He opened a smaller-footprint Floyd's 99 location with 8 chairs and grew steadily, reinvesting profits to pay down debt ahead of schedule. By year two, his improved credit profile qualified him for much more favorable refinancing terms.
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The barbershop and hair salon industry generates approximately $47 billion annually in the United States. The market has shown remarkable resilience, with hair care services proving relatively recession-resistant since consumers continue to get haircuts even during economic downturns.
The trend toward premiumization has benefited brands like Floyd's 99 significantly. Consumers who might have visited a cheap chain now seek a better experience at a modest price premium, and Floyd's 99 delivers exactly that. The brand's rock-and-roll aesthetic, professional service, and community focus have created strong customer loyalty and repeat visit rates that are favorable for franchise profitability.
As reported by Forbes franchise industry analysis, barbershop franchises have been among the stronger performers in the personal care segment over the past several years, benefiting from both demographic trends and the difficulty of outsourcing haircuts to automation or online services.
According to SBA franchise business guidance, the personal care services sector remains one of the more stable franchise categories for new investors seeking predictable demand.
One of the most common mistakes new franchise owners make is underestimating working capital needs during the ramp-up period. Most Floyd's 99 locations don't reach break-even revenue in their first few weeks. Building a cushion of 3 to 6 months of operating expenses in working capital is widely recommended by franchise consultants.
If your working capital runs short, a fast business loan from Crestmont Capital can provide rapid relief when you need funds quickly. We offer same-day business loans for qualified borrowers facing urgent cash flow needs.
Getting the financing right is only the beginning. Here are proven strategies to maximize the return on your Floyd's 99 investment once your doors are open.
Floyd's 99 locations that offer monthly membership or loyalty programs tend to have more predictable revenue. Recurring membership revenue improves your debt service coverage ratio and makes your business more attractive for refinancing or additional capital raises in the future.
Each barber chair represents a revenue-generating asset. The more hours each chair is in use during business hours, the more revenue your location generates. Online booking systems, efficient scheduling, and staff management directly impact profitability.
Floyd's 99 locations thrive when embedded in the local community. Community events, social media engagement, and local partnerships can drive organic customer growth without heavy advertising spend, helping preserve cash flow during the early months.
The most successful franchisees plan their financing before they need it. Start the conversation with Crestmont Capital today.
Apply for Financing NowThe total initial investment for a Floyd's 99 Barbershop franchise typically ranges from approximately $259,500 to $617,500, depending on factors such as location, market, buildout requirements, and local real estate costs. The franchise fee is approximately $37,500. Prospective franchisees should obtain the current Franchise Disclosure Document for precise figures.
Can I get an SBA loan for a Floyd's 99 franchise?Yes, SBA 7(a) loans are commonly used to finance franchise businesses including barbershop franchises. Typical requirements include a credit score of 680 or above, a 10% to 20% personal investment, a solid business plan, and collateral. SBA loans offer favorable terms including lower down payments and longer repayment periods compared to conventional loans.
What credit score do I need to finance a Floyd's 99 franchise?Traditional lenders and SBA programs generally prefer a credit score of 680 or higher. Alternative lenders, including Crestmont Capital, may work with scores as low as 600 for certain products. If your credit needs work, reviewing our bad credit business loan options is a good starting point.
How much do I need to put down for a franchise loan?Most lenders require a personal investment of 10% to 20% of the total project cost. For a $400,000 Floyd's 99 investment, this translates to $40,000 to $80,000 in personal capital. Some alternative financing structures may require less, while SBA programs have clear guidelines on minimum borrower equity contributions.
How long does it take to get approved for a franchise loan?Approval timelines vary significantly by lender type. SBA loans typically take 30 to 90 days. Conventional bank loans may take 2 to 4 weeks. Alternative lenders like Crestmont Capital can often approve and fund in 24 to 48 hours for qualified applicants, making them ideal for franchisees with time-sensitive commitments.
What does a Floyd's 99 franchise owner earn?Floyd's 99 corporate does not publish average unit revenues publicly in general marketing materials, but franchise owners should review Item 19 of the FDD for financial performance representations. Profitability varies significantly based on location, local market conditions, management quality, and operational efficiency. Successful Floyd's 99 locations have been known to generate $600,000 to $1.2 million or more in annual revenue.
Can I use equipment financing for barber chairs and salon equipment?Absolutely. Equipment financing is one of the most efficient ways to fund the physical buildout of a Floyd's 99 location. Equipment loans allow you to spread the cost of barber chairs, styling stations, wash stations, technology systems, and fixtures over 24 to 72 months while preserving working capital for operations. Crestmont Capital offers equipment financing for franchise buildouts.
Do I need collateral to get a Floyd's 99 franchise loan?Collateral requirements depend on the lender and loan type. SBA loans typically require a lien on business assets and may require a personal guarantee. Equipment financing uses the equipment itself as collateral. Some unsecured business loan products from alternative lenders like Crestmont Capital do not require hard collateral, though a personal guarantee may still be required.
Can I finance multiple Floyd's 99 locations simultaneously?Multi-unit financing is possible but requires demonstrating the financial capacity to service debt across all locations. Lenders will review your total debt service coverage and may structure loans differently for multi-unit operators. Working with a lender experienced in franchise financing is important for multi-unit deals.
What business plan elements are most important for franchise loan approval?Lenders focus particularly on the financial projections section, your market analysis, and your management team's qualifications. Include three-year cash flow projections, a break-even analysis, competitive landscape review, and biographical information demonstrating your relevant experience. Showing awareness of the risks and how you'll mitigate them also strengthens your application.
Is Floyd's 99 on the SBA Franchise Registry?Prospective franchisees should ask Floyd's 99 corporate directly about their current SBA Franchise Registry status, as listings can change. Being on the SBA registry can streamline the loan approval process by reducing review time for the franchise agreement itself.
How do royalty payments affect my loan qualifications?Ongoing royalties (approximately 5-6% of gross revenue for Floyd's 99) and marketing fund contributions reduce your net operating income. Lenders factor these costs into their debt service coverage ratio calculations. Your financial projections should accurately reflect all royalty and fee obligations to avoid qualification surprises during underwriting.
Can I use a business line of credit for ongoing operations?Yes, a business line of credit is an excellent tool for managing working capital needs during the ramp-up period and throughout operations. A line of credit lets you draw funds as needed and only pay interest on what you borrow, making it more flexible than a term loan for operational expenses. Crestmont Capital offers business lines of credit for qualified franchise operators.
What happens if my loan application is denied?A denial from one lender doesn't mean all doors are closed. Common reasons for denial include insufficient credit score, lack of collateral, inadequate personal investment, or weak business plan projections. Understanding why you were denied is the first step. Alternative lenders like Crestmont Capital often have more flexible criteria. Building your credit, adding a co-borrower, or increasing your personal capital contribution can also improve future applications.
Does Crestmont Capital work with first-time franchise investors?Yes. Crestmont Capital works with both experienced franchise investors and first-time franchise owners. We understand that every franchisee starts somewhere, and our team will work with you to identify the best financing structure for your specific situation, credit profile, and investment size. We encourage first-time investors to contact us early in the process for a free consultation.
Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.