What expenses related to the showroom redesign will Floors To Go NOT cover?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
design package to your Showroom (the "Redesign"). FTG will not purchase any tenant improvement items including, among other things, installation of floor coverings 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, Floors To Go will not cover tenant improvement items during the showroom redesign. These non-covered items specifically include the installation of floor coverings in showrooms, furniture, and office equipment. The estimated cost for the redesign ranges from $20,000 to $50,000 per showroom, depending on the showroom's size.
Floors To Go will cover the costs of the redesign, excluding tenant improvement items. However, a franchisee may incur an early termination fee if the Membership Agreement is terminated before the initial five-year term is completed. This fee is equal to the redesign costs, less 20% for each full year from the Membership Agreement's effective date that the franchisee remained a member.
For example, if a franchisee became a member on March 1, 2025, and the redesign cost was $30,000, and the membership terminated on January 1, 2028, the franchisee would owe $18,000. This is calculated as $30,000 minus [$30,000 X (20% x 2) = $12,000], which equals $18,000. The early termination fee is due immediately upon early termination. 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.