Does Floors To Go maintain separate bookkeeping accounts for Advertising Fees?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
nducting market research, public relations, and paying FTG's related administrative expenses.
FTG will have absolute discretion with the administration of the funds received as Advertising Fees, including but not limited to, the allocation of the funds, methods of payment, and reimbursement of expenses and advances paid by FTG to develop any such advertising materials or programs. The Advertising Fees and earnings, if any, will not otherwise inure to FTG's benefit, and FTG will maintain separate bookkeeping accounts for these Advertising Fees.
There is currently no advertising council composed of members that advise FTG on advertising policies.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–27)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, Floors To Go maintains separate bookkeeping accounts for Advertising Fees. This means that the money collected from franchisees for advertising purposes is tracked separately from the company's other funds.
Floors To Go has absolute discretion over how the Advertising Fees are administered, including how the funds are allocated, payment methods, and expense reimbursements. The advertising fees and any earnings from them will not benefit Floors To Go directly.
This arrangement is intended to ensure that advertising funds are used solely for the development of advertising materials and marketing programs for the benefit of the entire Floors To Go system, rather than for individual showrooms or the franchisor's general expenses. Franchisees pay Advertising Fees semi-annually, in two equal payments of $1,500, and are not required to participate in any other advertising fund.