Are Floors To Go members required to pay Advertising Fees?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
G received from its members during fiscal year 2024 were used to solicit new franchise sales.
All Advertising Fees paid by you will be used solely for the development of advertising materials and marketing programs for system-wide use and will not be used for marketing individual showrooms or to defray any of FTG's expenses not directly related to the development of these materials and programs. Members, including company-owned outlets, are required to pay Advertising Fees (payable semi-annually, in two equal payments of $1,500). Members are not required to participate in any other advertising fund. FTG will direct all programs financed by the Advertising Fees, with sole discretion over the creative concepts, materials and endorsements used, market and media selection (including whether the corresponding media coverage is local, regional or national in scope), and the allocation of resources. Advertising Fees may, in FTG's sole discretion, be used to pay the costs for preparing and producing customizable artwork, print media, television and radio commercials, as well as for conducting 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. Mem
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, members are required to pay Advertising Fees. These fees are payable semi-annually, with two equal payments of $1,500, totaling $3,000 annually. Floors To Go uses these Advertising Fees solely for the development of advertising materials and marketing programs for system-wide use, and not for marketing individual showrooms or to cover expenses unrelated to these materials and programs. Floors To Go has complete discretion over the advertising programs, including creative concepts, media selection, and resource allocation.
The FDD specifies that 100% of the Advertising Fees received during fiscal year 2024 were used for production and media placement expenses, and none were used to solicit new franchise sales. Floors To Go maintains separate bookkeeping accounts for these fees, ensuring they are used appropriately. While there is no advertising council composed of members to advise on advertising policies, members are not required to participate in any local or regional advertising cooperative, focusing the advertising efforts at the system-wide level.
Prospective Floors To Go franchisees should note that these advertising fees are mandatory and contribute to the overall marketing strategy of the franchise system. Understanding how these fees are managed and allocated can help franchisees assess the value and potential return on investment in the franchise's marketing efforts. Additionally, franchisees should be aware that Floors To Go does not provide independent audits of the advertising fund, but will provide a statement of advertising expenditures upon request.