What was the amount of revenue from the sale of franchise licenses for Floors To Go in 2024?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenues are primarily derived from service fees, member advertising fees, and brokerage fees from certain floor and window covering manufacturers utilized by the franchisees. The performance obligation related to these services is met over the terms of the franchise agreement. In certain circumstances fees collected are deferred and recognized over time as the related performance obligations are satisfied.
We identified the following services as one performance obligation in connection with the franchise contracts:
- Intellectual Property (IP) license to the Company's programs, registered trademarks and name.
- Service fees are monthly charges for training and other support services recognized when invoiced.
- Member advertising fees consist of annual charges for advertising and marketing materials.
The Company also recognizes a portion of revenue from the sale of franchisee licenses at the time a contract between the Company and the franchisee is executed; additional license revenue is received in installments over a period of up to five years. The performance obligation related to the sale of a franchisee license is met over the terms of the franchise agreement.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
I am unable to provide the specific revenue from the sale of franchise licenses for Floors To Go in 2024, as this information is not present within the provided excerpts from the 2025 Franchise Disclosure Document. While the excerpts discuss revenue recognition practices, including those related to franchise license sales, they do not include the specific revenue figure for 2024.
Item 23 of the Floors To Go FDD includes financial statements and notes that describe how the company recognizes revenue from franchise fees. The FDD mentions that revenue from franchise licenses is recognized when a contract is executed, with additional revenue received in installments over a period of up to five years. This indicates that the initial franchise fee is not fully recognized upfront but is instead spread out over the term of the franchise agreement.
A prospective franchisee should ask Floors To Go for the specific revenue earned from the sale of franchise licenses in 2024. This information would be helpful in understanding the company's financial performance and the demand for Floors To Go franchises.