Is the Floors To Go Advertising Fee for the first year prorated?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. You will not be responsible for the Advertising Fee for the first three (3) months following the Effective Date of this Agreement. The Advertising Fee payable for the first year of this Agreement shall be prorated accordingly.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the advertising fee for the first year is prorated. The annual advertising fee is $3,000, payable in two semiannual installments of $1,500.
For the first three months after the agreement's effective date, new Floors To Go franchisees are not required to pay the advertising fee. As a result, the advertising fee for the first year is prorated to account for this initial three-month exemption.
This proration benefits new franchisees by reducing their initial financial burden, allowing them to allocate resources to other startup costs during the critical early months of operation. This is a fairly common practice in franchising, as it helps new franchisees manage their cash flow during the initial ramp-up period.