How much is each semi-annual payment for the Floors To Go Advertising Fee?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
Service Fee from time to time consistent with changes in the demands of the FTG System, and you agree to pay such an increased or decreased Service Fee.
6.4. Advertising Fee.
- a. In order to promote your membership in Your Territory, an annual advertising fee (the "Advertising Fee") of $3,000.00 is payable semiannually, in two equal payments of $1,500.
- b. You will not be responsible for the Advertising Fee for the first three (3) months following the Effective Date of this Agreement. The Advertising Fee payable for the first year of this Agreement shall be prorated accordingly.
- c. All Advertising Fees paid by you shall be used solely for the development and production of advertising programs and materials to promote the products and services provided by FTG members to their customers. All Advertising Fees paid by you are for system-wide use and will not be used for marketing individual showrooms.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, franchisees must pay an annual advertising fee of $3,000. This fee is payable in two semi-annual installments. Each semi-annual payment is $1,500.
Floors To Go uses the advertising fees collected from franchisees solely to develop and produce advertising programs and materials. These advertising efforts aim to promote the products and services offered by Floors To Go members to their customer base. The FDD specifies that these funds are for system-wide use and will not be used for marketing individual showrooms.
Notably, new Floors To Go franchisees are not responsible for paying the Advertising Fee for the first three months after the franchise agreement's effective date. The advertising fee for the first year is prorated to reflect this initial three-month exemption. Floors To Go also retains the right to adjust the Advertising Fee based on the advertising needs of the Floors To Go system.
Prospective franchisees should consider the advertising fee and its potential adjustments as part of their overall financial planning. Understanding how these fees are used and the potential for changes is crucial for assessing the long-term costs and benefits of a Floors To Go franchise.