What is the consequence of not purchasing the minimum required amount through the Floors To Go system?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
ed Purchases, Purchase Restrictions and Approved Suppliers**
In order to utilize the FTG System, you must purchase a certain amount of merchandise from the floor covering vendors or manufacturers with whom FTG has negotiated favorable group prices and terms. Section 7.1 of the Membership Agreement requires you to purchase, for each of your Showrooms, a minimum of $350,000 or 80% of your total floor covering and window treatment purchases, whichever is greater, through the FTG System during the calendar year following the opening of each such Showroom. Therefore, Multiple Showroom Members are required to satisfy minimum purchase requirements for each of their Showrooms. Only those floor covering and window treatment products that FTG designates as part of the FTG System qualify towards the minimum purchase requirements. Failure to meet the minimum purchase requirements for your Showrooms could result in the termination of your membership in the FTG System. Compliance with the minimum purchase requirements could also be one factor, among others, when determinin
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, franchisees must purchase a minimum amount of merchandise through the FTG System to maintain their membership. Specifically, Section 7.1 of the Membership Agreement requires franchisees to purchase, for each showroom, a minimum of $350,000 or 80% of their total floor covering and window treatment purchases, whichever is greater, through the FTG System during the calendar year following the opening of each showroom. This requirement applies to each showroom for franchisees with multiple locations.
The document specifies that only floor covering and window treatment products designated as part of the FTG System count toward meeting the minimum purchase requirements. Failure to meet these minimum purchase requirements for a franchisee's showrooms could result in the termination of their membership in the FTG System.
Furthermore, compliance with the minimum purchase requirements is considered as one factor when Floors To Go determines whether to renew a franchise agreement or grant additional showroom memberships. This indicates that consistently meeting the purchase thresholds is important for the continued growth and success of a Floors To Go franchisee.