Does the Early Termination Fee apply to each Floors To Go Showroom that is redesigned?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
ction, arbitration, hearing or dispute relating to this Agreement or the termination thereof.
13.3. Rights and Duties of Parties Upon Expiration or Termination.
- a. If this Agreement is terminated prior to completion of the Original Term, you must pay us an early termination fee equal to the amount associated with the Redesign of your Showroom less 20% for each full year from the Effective Date of this Agreement that you remained a member (the "Early Termination Fee"). For example, if you became a member on March 1, 2025, and the cost of your Redesign was $30,000, and your membership was terminated on January 1, 2028, you would owe us a cash payment equal to $18,000 ($30,000 – [$30,000 X (20% x 2) = $12,000] = $18,000). The Early Term
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the Early Termination Fee does apply to each showroom that Floors To Go redesigns. If a franchisee terminates their agreement before the end of the original term, they must pay Floors To Go an early termination fee.
The early termination fee is calculated based on the cost associated with the redesign of the showroom, less 20% for each full year from the effective date of the agreement that the franchisee remained a member. For example, if the redesign cost $30,000 and the membership was terminated after 2 years and 10 months, the franchisee would owe $18,000. This is calculated as $30,000 minus ([$30,000 X (20% x 2) = $12,000] = $18,000).
This fee is due immediately upon early termination. Floors To Go provides an example of how the early termination fee is calculated, which can help a prospective franchisee understand the financial implications of ending the agreement early. The cost of redesigning a Floors To Go showroom is estimated to be between $20,000 and $50,000.