Where can I find information about the advertising fee for a Floors To Go franchise?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenues are primarily derived from service fees, member advertising fees, and brokerage fees from certain floor and window covering manufacturers utilized by the franchisees. The performance obligation related to these services is met over the terms of the franchise agreement. In certain circumstances fees collected are deferred and recognized over time as the related performance obligations are satisfied.
We identified the following services as one performance obligation in connection with the franchise contracts:
- Intellectual Property (IP) license to the Company's programs, registered trademarks and name.
- Service fees are monthly charges for training and other support services recognized when invoiced.
- Member advertising fees consist of annual charges for advertising and marketing materials.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, revenues are derived from service fees, member advertising fees, and brokerage fees from certain floor and window covering manufacturers utilized by the franchisees. The member advertising fees consist of annual charges for advertising and marketing materials.
This means that as a Floors To Go franchisee, you will be required to pay an annual advertising fee for advertising and marketing materials. This fee contributes to the overall revenue of Floors To Go, LLC, and is used to cover the costs associated with creating and distributing these materials.
Prospective franchisees should review the full FDD and speak with current franchisees to understand the specific amount and terms of the member advertising fees. Understanding these costs is crucial for assessing the overall financial viability of the franchise.