What is the amount of each semi-annual Advertising Fee payment for Floors To Go?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
G received from its members during fiscal year 2024 were used to solicit new franchise sales.
All Advertising Fees paid by you will be used solely for the development of advertising materials and marketing programs for system-wide use and will not be used for marketing individual showrooms or to defray any of FTG's expenses not directly related to the development of these materials and programs. Members, including company-owned outlets, are required to pay Advertising Fees (payable semi-annually, in two equal payments of $1,500). Members are not required to participate in any other advertising fund. FTG will direct all programs financed by the Advertising Fees, with sole discretion over the creative concepts, materials and endorsements used, market and media selection (including whether the corresponding media coverage is local, regional or national in scope), and the allocation of resources. Advertising Fees may, in FTG's sole discretion, be used to pay the costs for preparing and producing customizable artwork, print media, television and radio commercials, as well as for conducting market research, public relations, and paying FTG's related administrative expenses.
FTG will have absolute discretion with the administration of the funds received as Advertising Fees, including but not limited to, the allocation of the funds, methods of payment, and reimbursement of expenses and advances paid by FTG to develop any such advertising materials or programs. The Advertising Fees and earnings, if any, will not otherwise inure to FTG's benefit, and FTG will maintain separate bookkeeping accounts for these Advertising Fees.
There is currently no advertising council composed of members that advise FTG on advertising policies. Mem
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–27)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, members are required to pay Advertising Fees, which are payable semi-annually. These fees are divided into two equal payments of $1,500. Therefore, each semi-annual payment for the Advertising Fee is $1,500.
The FDD specifies that all Advertising Fees collected from franchisees will be used solely for the development of advertising materials and marketing programs for system-wide use. These funds will not be used for marketing individual showrooms or to cover Floors To Go's expenses that are not directly related to the development of these materials and programs. Floors To Go retains sole discretion over the creative concepts, materials, endorsements, market and media selection, and the allocation of resources for these advertising programs.
Floors To Go will manage the funds received as Advertising Fees, including the allocation of funds, methods of payment, and reimbursement of expenses. The Advertising Fees and any earnings from them will not benefit Floors To Go directly, and separate bookkeeping accounts will be maintained for these fees. Franchisees should note that there is currently no advertising council composed of members to advise Floors To Go on advertising policies, and members are not required to participate in a local or regional advertising cooperative. Floors To Go will provide a statement of advertising expenditures upon request, but is not obligated to conduct separate audits on the receipt and disbursement of Advertising Fees.