What is the estimated cost range for the Floors To Go showroom redesign?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
ngs in showrooms, furniture, or office equipment. FTG estimates that the cost of the Redesign will be between Twenty Thousand Dollars ($20,000) and Fifty Thousand Dollars ($50,000) per Showroom, depending on the size of your Showroom. FTG will cover these costs of the Redesign (i.e., non-tenant-improvement-item costs); however, if your Membership Agreement is terminated prior to completion of the initial fiveyear term, you must pay FTG 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 your Membership 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 Termination Fee shall be due and payable to FTG in cash immediately on the date of any such early termination. You will not be required to repay any portion of the cost to Redesign your Showroom if you remain a
Source: Item 6 — OTHER FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the estimated cost for the showroom redesign ranges from $20,000 to $50,000. The actual cost depends on the size of the showroom. Floors To Go covers the costs of the redesign, excluding tenant improvement items like floor coverings, furniture, and office equipment.
However, there's a significant financial implication if a franchisee terminates the Membership Agreement before the initial five-year term. In such cases, the franchisee must reimburse Floors To Go for the redesign costs, less a 20% reduction for each full year of membership. For example, if the redesign cost $30,000 and the agreement is terminated after three years, the franchisee would owe $18,000. This early termination fee is due immediately upon termination.
This repayment obligation is waived if the franchisee remains a Floors To Go member for the entire initial five-year term. This condition incentivizes franchisees to maintain their membership and operate the franchise for the long term. Prospective franchisees should carefully consider this early termination fee and its implications for their financial planning and commitment to the Floors To Go franchise.