Are all fees uniformly imposed by Floors To Go?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
eing charged to new members.
ITEM 6. OTHER FEES
| Type of Fee | Amount | Due Date | Remarks(1) | |
|---|---|---|---|---|
| Service Fee | $400 | 10th Day of Each | These fees are non- | |
| (Single Showroom) (2) (3) | Month | refundable. | ||
| Advertising Fee (Single or Multiple Showroom)(3)(4) | $3,000 | Payable semi- annually, in two equal payments of $1,500 | These fees are non- refundable. Paid to FTG. | |
| Local Advertising(5) | 4%-6% of monthly gross sales(6) | As Incurred Each Month | Paid to advertising vendors. | |
| Renewal Fee | $750 | At Time of Renewal | This fee is non- refundable. | |
| Insurance | Costs and premiums | As incurred | If you do not obtain or maintain insurance coverage, and we choose to do so on your behalf, you must reimburse us. |
| Type of Fee | Amount | Due Date | Remarks(1) | |
|---|---|---|---|---|
| Transfer Fee | $5,000 | At Time of Transfer | This fee is non- refundable. | |
| Audit | Cost of audit plus interest on underpayment | Due When Billed | Payable only if audit shows an understatement of at least 2%.(7) | |
| Indemnity | Will vary under circumstances | If incurred, on demand | You must indemnify and reimburse us for our costs and any judgment if we are sued for claims relating to the operation of your franchised business. | |
| Early Termination Fee | $20,000 to $50,000 | Upon early termination of the Membership Agreement | If the Membership Agreement is terminated prior to completion of the initial five-year term, you will reimburse us for the costs associated with the Redesign of your Showroom. (8) | ### Footnotes to table: |
- (1) All fees are uniformly imposed and, except as otherwise noted, collected by FTG.
Source: Item 6 — OTHER FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the fees are uniformly imposed, with some exceptions. Specifically, Footnote (1) to the Other Fees table states that all fees are uniformly imposed and, except as otherwise noted, collected by FTG. This indicates that while the general policy is to apply fees consistently across all franchisees, there may be certain fees that are not uniformly imposed or collected directly by Floors To Go.
For example, the Local Advertising fee, listed as 4%-6% of monthly gross sales, is paid to advertising vendors, not directly to Floors To Go. The cost of insurance will vary based on the franchisee's specific circumstances and chosen provider. Similarly, the Indemnity costs will vary depending on the specific legal claims and circumstances. The Audit fee is only imposed if an audit reveals an understatement of at least 2% in reported figures.
Prospective franchisees should clarify with Floors To Go the specific conditions under which fees may not be uniformly imposed. Understanding these nuances is crucial for accurate financial planning and avoiding unexpected costs. While most standard fees like the Service Fee ($400 per month) and Advertising Fee ($3,000 annually) are uniformly applied, variable fees can significantly impact a franchisee's profitability.