What is the minimum purchase requirement for each Floors To Go showroom?
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 Floors To Go's 2025 Franchise Disclosure Document, franchisees must meet a minimum purchase requirement for each showroom. Specifically, a franchisee must purchase a minimum of $350,000 or 80% of their total floor covering and window treatment purchases, whichever is greater, through the FTG System during the calendar year following the opening of each showroom. Only floor covering and window treatment products that Floors To Go designates as part of the FTG System qualify towards these minimum purchase requirements.
This requirement has significant implications for a new Floors To Go franchisee. It means that franchisees cannot simply stock their showroom with whatever products they choose; they must prioritize purchases through the FTG System to meet the minimum threshold. Failing to meet this purchase volume can lead to termination of the Membership Agreement, as stated in Subsection 13.2(b)(4) of the Membership Agreement.
Prospective franchisees should carefully consider whether they can realistically meet this minimum purchase requirement, taking into account their local market conditions and projected sales volume. It is also important to understand which specific products qualify towards the minimum, as only those designated by Floors To Go as part of the FTG System will count. This requirement ensures that franchisees are actively promoting and selling products within the Floors To Go system, but it also places a financial burden on the franchisee to meet the specified purchase volume.