Where can I find information about the service 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, among other sources. The FDD states that service fees are monthly charges for training and other support services, and these fees are recognized when invoiced. This implies that as a Floors To Go franchisee, you will be required to pay monthly service fees, which cover the costs of training programs and ongoing support provided by the franchisor.
The document specifies that the performance obligation related to these services is met over the terms of the franchise agreement. This means Floors To Go recognizes the revenue from these fees gradually as they provide the services throughout the duration of the franchise agreement. This is a common practice in franchising, where ongoing fees are tied to the continuous support and resources provided to franchisees.
Prospective franchisees should review the franchise agreement carefully to understand the exact amount of the monthly service fees, when they are invoiced, and what specific training and support services are covered under these fees. Understanding these details is crucial for budgeting and assessing the overall cost and value proposition of the Floors To Go franchise.