Can Floors To Go increase or decrease the Advertising Fee?

According to Floors To Go's 2025 Franchise Disclosure Document, Floors To Go retains the right to adjust the Advertising Fee. The document states that Floors To Go can reasonably and uniformly increase or decrease the Advertising Fee as needed for the FTG System's advertising requirements. As a franchisee, you agree to pay any such adjusted Advertising Fee.

The initial Advertising Fee is $3,000.00 annually, payable in two semiannual installments of $1,500. However, franchisees are not responsible for the Advertising Fee for the first three months after the agreement's effective date, with the first year's fee being prorated accordingly. All Advertising Fees collected are designated for system-wide advertising programs and materials, not for marketing individual showrooms. These materials may include in-store displays, direct mail, print advertising, radio scripts, television commercials, and multi-media promotions, depending on available funds.

This clause gives Floors To Go flexibility in managing the advertising budget, which could be beneficial if more funds are needed for advertising initiatives. However, it also means that franchisees must be prepared for potential increases in the Advertising Fee, which could impact their operating costs. It is important for prospective franchisees to understand how these fees are managed and what factors might trigger an increase or decrease.