Who directs the programs financed by the Advertising Fees for Floors To Go?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Members are not presently required to participate in a local or regional advertising cooperative.
Upon your request, we will provide you with a statement setting forth an accounting of our advertising expenditures. However, FTG is not responsible for, nor will FTG assume any direct or indirect liability or obligation to you with respect to, having independent certified public accountants conduct a separate audit on the receipt and disbursement of the Advertising Fees that FTG receives from its members. All Advertising Fees remaining for any particular year, if any, will be carried forward for use during the next year.
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, Floors To Go directs all programs financed by the Advertising Fees. This includes having sole discretion over the creative concepts, materials, endorsements, market and media selection, and the allocation of resources. The media coverage can be local, regional, or national in scope, depending on Floors To Go's decision.
Floors To Go has absolute discretion in administering the advertising funds, including how the funds are allocated, payment methods, and reimbursement of expenses. These Advertising Fees and any earnings from them will not benefit Floors To Go directly, and Floors To Go will maintain separate bookkeeping accounts for these fees.
Currently, there is no advertising council composed of members that advises Floors To Go on advertising policies, and members are not required to participate in local or regional advertising cooperatives. Floors To Go will provide a statement of advertising expenditures upon request, but is not liable for a separate audit of the Advertising Fees by independent certified public accountants. Any Advertising Fees remaining for a particular year will be carried forward for use in the next year.
For a prospective franchisee, this means that while you are required to pay Advertising Fees (payable semi-annually, in two equal payments of $1,500), you have limited input into how those funds are spent. You are entrusting Floors To Go to make the best decisions regarding advertising and marketing for the benefit of the entire system. It is important to note that these fees are designated for system-wide use and not for marketing individual showrooms.