When is the Floors To Go audit fee due?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks(1) |
|---|---|---|---|
| Audit | Cost of audit plus interest on underpayment | Due When Billed | Payable only if audit shows an understatement of at least 2%.(7) |
- (7) FTG has the right to audit your books and records relating to your commitment to purchase, for each of your Showrooms, $350,000 or 80% of your total floor covering and window treatment purchases, whichever is greater, through the FTG Marketing System during the calendar year following the opening of each such Showroom.
If an inspection discloses a deficiency of two percent (2%) or more, you agree to reimburse FTG for all costs and expenses connected with such audit (including, without limitation, reasonable accounting and attorneys' fees).
Source: Item 6 — OTHER FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the audit fee is due when billed. The amount of the fee is the cost of the audit plus interest on any underpayment. However, this fee is only payable if the audit reveals an understatement of at least 2%.
Floors To Go has the right to audit a franchisee's books and records relating to their commitment to purchase $350,000 or 80% of their total floor covering and window treatment purchases, whichever is greater, through the FTG Marketing System during the calendar year following the opening of each showroom.
If an inspection discloses a deficiency of 2% or more, the franchisee must reimburse Floors To Go for all costs and expenses connected with the audit, including reasonable accounting and attorneys' fees. This means that a Floors To Go franchisee will only be charged an audit fee if they underreport by at least 2% and will be responsible for covering the costs associated with the audit.