What is the Floors To Go Advertising Fee used for?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
vice Fee from time to time consistent with changes in the demands of the FTG System, and you agree to pay such an increased or decreased Service Fee.
6.4. Advertising Fee.
- a. In order to promote your membership in Your Territory, an annual advertising fee (the "Advertising Fee") of $3,000.00 is payable semiannually, in two equal payments of $1,500.
- 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.
- c. All Advertising Fees paid by you shall be used solely for the development and production of advertising programs and materials to promote the products and services provided by FTG members to their customers. All Advertising Fees paid by you are for system-wide use and will not be used for marketing individual showrooms. These programs and materials may, as available funds permit, include, but not be limited to, instore point-of-purchase displays, customizable direct mail materials, customizable newspaper and print advertising materials, customizable radio script packages, customizable television commercial packages, and focused multi-media promotions.
- d. We reserve the right to reasonably and uniformly increase or decrease the Advertising Fee
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the annual Advertising Fee is $3,000, payable in two semiannual installments of $1,500. Floors To Go uses these fees solely for the development and production of advertising programs and materials designed to promote the products and services offered by Floors To Go members to their customers.
The advertising programs and materials are for system-wide use and not for marketing individual showrooms. These may include in-store point-of-purchase displays, customizable direct mail, newspaper and print advertising, radio script packages, television commercial packages, and focused multi-media promotions, depending on available funds.
Floors To Go retains the right to adjust the Advertising Fee reasonably and uniformly based on the advertising needs of the Floors To Go system. However, new franchisees are not responsible for the Advertising Fee for the first three months after the franchise agreement's effective date, with the first year's fee prorated accordingly.