What was the net change in the number of franchised Floors To Go outlets during 2024?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 151 | 151 | 0 |
| 2023 | 151 | 161 | 10 | |
| 2024 | 161 | 150 | -11 | |
| Company- | 2022 | 0 | 0 | 0 |
| Owned | ||||
| 2023 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | |
| Total Outlets | 2022 | 151 | 151 | 0 |
| 2023 | 151 | 161 | 10 | |
| 2024 | 161 | 150 | -11 |
Source: Item 20 — OUTLETS AND MEMBER INFORMATION (FDD pages 37–47)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the net change in the number of franchised outlets during 2024 was -11. This means that the Floors To Go system experienced a decrease of 11 franchised locations during that year. At the start of 2024, there were 161 franchised outlets, but by the end of the year, the number had dropped to 150.
This decrease could be due to several factors, such as franchisees not renewing their agreements, terminations, or closures. It is important to note that while the number of franchised locations decreased, the number of company-owned locations remained at zero. This indicates that the overall decrease in outlets is solely attributed to franchised locations.
A prospective franchisee should inquire about the reasons behind this net decrease. Understanding the causes of closures or non-renewals can provide valuable insight into the health and stability of the Floors To Go franchise system. It would be prudent to ask the franchisor about the support and resources they provide to help franchisees succeed and mitigate the risk of closures.
Monitoring the net change in franchise outlets is a common practice when evaluating a franchise opportunity. A consistently positive net change suggests growth and stability, while a negative change, like the one experienced by Floors To Go in 2024, warrants further investigation to understand the underlying factors and potential risks.