What is the definition of 'Redesign' in the context of a Floors To Go franchise?

According to Floors To Go's 2025 Franchise Disclosure Document, the 'Redesign' refers to the conversion of a franchisee's showroom to a Floors To Go showroom. Floors To Go will provide and deliver the necessary racks, displays, and samples to the franchisee's showroom. Additionally, Floors To Go will provide a retail store design consultant to assist the franchisee in adapting the Floors To Go showroom design package to their specific showroom. Floors To Go bears the expense for these redesign elements.

The FDD also mentions that the cost of the Redesign is estimated to be between $20,000 and $50,000 per showroom. However, these costs refer to tenant improvement items, including the installation of floor coverings, furniture, or office equipment, which are not covered by Floors To Go. The costs covered by Floors To Go exclude tenant-improvement-item costs.

It is important to note that if a franchisee terminates their Membership Agreement before the initial five-year term is complete, they may be subject to an Early Termination Fee. This fee is equal to the amount associated with the Redesign of the showroom, less 20% for each full year from the effective date of the Membership Agreement that the franchisee remained a member. For example, if the redesign cost $30,000 and the membership was terminated after 2 years, the franchisee would owe $18,000. However, if the franchisee remains a Floors To Go member for the entire initial five-year term, they will not be required to repay any portion of the redesign cost.