Where can I find information about the brokerage fee for a Floors To Go franchise?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
differ from those estimates. Significant estimates include, but are not limited to, the franchisee cashback program accruals.
Cash
Cash consists of demand deposits in banks. The Company maintains its deposits in amounts which, at times, may exceed federally insured limits, in one local financial institution. Management does not believe the Company is exposed to any significant interest rate or other financial risk as a result of these deposits.
Revenue Recognition
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.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, revenue is 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.
Floors To Go recognizes brokerage fees from certain floor and window covering manufacturers utilized by the franchisees monthly based on the total amount of purchases made by the member franchisees and the terms of the contract. The performance obligation for the franchisees and manufacturers are considered to be met over the terms of the franchise agreement.
Prospective franchisees can find information about the brokerage fees in the notes to the financial statements. This information is helpful for understanding how Floors To Go generates revenue and how brokerage fees are calculated and recognized. Understanding these fees is important for assessing the financial performance and stability of the franchise system.