To whom is the advertising fee paid for a Floors To Go franchise?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Advertising Fee | $3,000 | Lump Sum | Payable semi- annually, in two equal payments of $1,500 | FTG |
| Local Advertising/ Promotional Costs | $0-$4,000 per Showroom | Periodic | Monthly | Third Parties |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 14–17)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the advertising fee is paid to FTG. This fee amounts to $3,000, payable semi-annually in two equal installments of $1,500. This indicates that Floors To Go collects this fee directly, presumably to manage and execute advertising initiatives on behalf of its franchisees.
In addition to the advertising fee paid to FTG, franchisees should also budget for local advertising and promotional costs. These costs can range from $0 to $4,000 per showroom and are paid periodically on a monthly basis to third parties. This suggests that while FTG handles some advertising centrally, franchisees are also expected to engage in local marketing efforts to promote their individual showrooms.
Prospective franchisees should clarify with Floors To Go what specific advertising activities are covered by the $3,000 advertising fee paid to FTG, as well as the extent to which they are required or expected to participate in local advertising initiatives. Understanding the allocation of responsibilities and the expected expenditure on advertising is crucial for budgeting and assessing the potential return on investment.