What is the minimum purchase requirement for a Floors To Go franchisee each year?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
l any floor covering or window treatment products on or through any Internet Web Site or Domain Name.
Continuation of your franchise or territorial rights is not directly dependent upon achievement of certain sales volume, market penetration or other contingency. However, you must purchase, for each of your Showrooms, a minimum of $350,000 or 80% of your total floor covering and window treatment purchases, whichever is greater, through the FTG System during the calendar year following the opening of each such Showroom. Only those floor covering and window treatment products that FTG designates as part of the FTG System qualify towards the minimum purchase requirements. Failure to achieve the volume purchase requirements set forth in Subsection 7.1(a) of the Membership Agreement does give FTG the
Source: Item 12 — TERRITORY (FDD pages 27–30)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, franchisees must purchase a minimum amount of products through the FTG System each year. Specifically, for each showroom, a franchisee is required to purchase at least $350,000 or 80% of their total floor covering and window treatment purchases, whichever is greater. This minimum purchase requirement applies during each calendar year following the opening of the showroom.
It is important to note that only floor covering and window treatment products that Floors To Go designates as part of the FTG System count towards meeting this minimum purchase requirement. This means franchisees need to be careful to source products specifically approved by Floors To Go to ensure their purchases contribute to fulfilling the annual quota.
Failure to meet the minimum purchase requirements can have serious consequences for a Floors To Go franchisee. According to the FDD, Floors To Go reserves the right to terminate the Membership Agreement if a franchisee does not meet the specified volume purchase requirements. This highlights the importance of carefully planning inventory and sales strategies to ensure compliance with the franchise agreement and avoid potential termination.