What administrative costs does the Floors To Go Service Fee offset?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
and, except as otherwise noted, collected by FTG.
- (2) The Service Fee will begin 90 days after you become a member. The purpose of the Service Fee is to offset a portion of the administrative costs associated with managing and servicing FTG's relationships with its members, including, without limitation, administrative costs connected to the FTG CashBack Program and FTG's merchandising programs, store design/Redesign (as defined below) programs and business-to-business programs.
- (3) FTG reserves the right to reasonably and uniformly increase or decrease the Service Fee and the Advertising Fee from time to time consistent with changes in the demands of the FTG System. The maximum amount that FTG will increase these fees to is $5,000.
- (4) Your Advertising Fee will not exceed $3,000.00 per year regardless of the number of Showrooms you have.
Source: Item 6 — OTHER FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the Service Fee is intended to offset a portion of the administrative costs associated with managing and servicing Floors To Go's relationships with its members. This fee is $400 and is due on the 10th day of each month.
The administrative costs covered by the Service Fee include those connected to the FTG CashBack Program, merchandising programs, store design/Redesign programs, and business-to-business programs. The Redesign program involves converting a franchisee's showroom to a Floors To Go Showroom, with Floors To Go providing racks, displays, samples, and a retail store design consultant.
Floors To Go reserves the right to reasonably and uniformly increase or decrease the Service Fee consistent with changes in the demands of the Floors To Go System. However, the maximum amount that Floors To Go will increase these fees to is $5,000. The Service Fee will begin 90 days after a franchisee becomes a member.