What is the maximum compensation rate for Floors To Go's advertising placement services?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
For administrative convenience: (1) we will control the management and disbursement of the funds received as Advertising Fees, as defined in Section 6.4 of this Agreement; (2) we will serve as the advertising agency primarily responsible for creating and developing the advertising materials (e.g., artwork, print media presentations, direct mail flyers, promotional materials, point-of-sale formats, audio and video presentations) which we deem appropriate for the membership advertising programs; (3) we will be authorized and available to provide local or regional advertising placement services to all members upon request and be compensated for our placement services at a rate not in excess of fifteen percent (15%) of the cost of the requested advertising; and (4) we will, upon request, provide advertising consulting and media planning services to you or groups of members for a mutually agreed upon fee.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, Floors To Go is authorized to provide local or regional advertising placement services to franchisees upon request. Floors To Go can be compensated for these placement services, but the compensation rate cannot exceed fifteen percent (15%) of the cost of the advertising requested by the franchisee.
This means that if a franchisee asks Floors To Go to place $1,000 worth of advertising, Floors To Go's compensation for this service cannot be more than $150. This arrangement allows Floors To Go to assist franchisees with their advertising needs while ensuring that the fees for these services are capped.
This setup is fairly common in franchising, where franchisors often provide advertising support and guidance to franchisees. The specified compensation rate provides transparency and helps franchisees budget for advertising expenses. Franchisees should consider this service and its associated cost when evaluating the overall value proposition of the Floors To Go franchise.