During the operation of the Floors To Go System, what are Floors To Go's obligations to its franchisees?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
they charge to their customers.
B. FTG's Obligations During Membership Operation
During the operation of the FTG System, FTG's obligations are limited to selecting floor covering and window treatment products that meet FTG's quality standards, negotiating with vendors to offer favorable pricing to FTG members (see Section 5 of the
Membership Agreement), controlling the management and disbursement of the funds received as Advertising Fees (see Sections 5.2 and 6.4 of the Membership Agreement), and providing certain approved artwork, print media presentations, direct mail flyers, promotional materials, point-of-sale formats, audio and video presentations for our approved advertising programs and information we develop for your use in marketing and conducting local advertising for your FTG Showroom at a reasonable cost to you (see Sections 5.2 and 6.4 of the Membership Agreement).
FTG is also obligated to use its commercially reasonable efforts to:
- (1) maintain the reputation of the FTG System;
- (2) maintain a wide variety of floor covering and window treatment products at favorable prices; and
- (3) defend the Marks licensed with the FTG System.
FTG is also obligated to provide and deliver to you at your Showroom the racks, displays and samples necessary to convert your Showroom to a FTG Showroom, as well as a store design consultant to assist you with adapting the FTG Showroom design package to your Showroom (the "Redesign"). FTG will not purchase any tenant improvement items, including, among other things, installation of floor coverings in showrooms, furniture, or office equipment (see Section 5.2 of the Membership Agreement).
C. Expected Days to Commence Operations
The typical length of time between the signing of the Membership Agreement and the opening of the member's showroom as a FTG Showroom is 30 to 90 days. Since all current FTG members have established floor covering stores prior to becoming a member, there are generally no delays occasioned by the new member needing to obtain a lease or to secure financing and building permits. The time period between the signing of the Membership Agreement and the new member commencing use of the FTG System may be impacted by the length of time needed to ensure that such member's FTG Showroom signage complies with local zoning and other ordinances and by delays in the installation of equipment, fixtures and signs in connection with the Redesign.
D. Member Training
Since FTG members already have experience in owning and operating floor covering stores, FTG does not offer an initial training program.
From time to time, FTG may offer seminars focused on topics of interest to FTG members (e.g., sales and marketing techniques, retail management best practices, new product offerings, and Internet applications), in which FTG members may voluntarily choose to participate. Since these seminars are specifically designed in response to timely issues faced by FTG members, the subjects taught, as well as the formats and venues in which such subjects are presented, vary from year to year. There is no predetermined plan with respect to the locations at which such seminars are held; nor is there any predetermined plan with respect to the seminar instructors or the nature of corresponding instructional materials.
There are no plans or instructors for the seminars. Attending members are expected to bear the expenses of attending these elective seminars, including lodging and meals.
In addition, FTG may hold conferences or conventions at various times to discuss matters such as sales techniques, product selection and costs, performance standards, advertising programs, new products, and operational modifications and updates. You must attend FTG's annual convention. FTG will bear the cost of your registration fee for your first convention, but you must pay all related travel, lodging and other personal expenses you incur (see Section 5.2(b) of the Membership Agreement). In addition, you must also attend FTG's annual convention in subsequent years, in order to receive the full benefit of the FTG System, and we reserve the right to charge you a fee if you elect not to attend. FTG will charge you a registration fee for your attendance at all subsequent annual conventions, and you must pay all related travel, lodging and other personal expenses that you incur during such conventions. The annual conventions, voluntary training programs, and other elective conferences and conventions will be held in a location within the United States designated by FTG.
During the past 12 months, one hundred percent (100%) of new members enrolled in our voluntary training programs and elective conferences and conventions.
E. Advertising Materials, Fees, Services and Responsibilities
FTG will develop advertising materials and marketing programs during the term of your Membership Agreement and provide these materials and programs to you and all FTG members (see Section 6.4 of the Membership Agreement).
Some advertising materials are prepared by FTG, and you are permitted to develop your own advertising material consistent with FTG's standards or otherwise subject to FTG's approval. All advertising, marketing and promotional materials which you use in connection with your Showroom must conform to all restrictions and specifications provided by us from time to time. You are not permitted to use the name "Floors To Go" as part of your legal or business name except to describe that you are doing business as a FTG member or to geographically describe the location of your franchised business. Any advertising, marketing or promotional materials must be approved in writing by us prior to any publication by you. You may publish any of our approved advertising materials in any reputable media utilized for those purposes in your territory.
Our members-only website may contain approved artwork print media presentations, promotional materials, direct mail flyers, point-of-sale formats, audio and video presentations for our approved advertising programs as well as the guidelines for and limitations upon their usage. Members are responsible for paying any additional cost of having these audio and video presentations customized for local usage. Multiple copies of these advertising materials and programs will be furnished to you at FTG's direct cost of producing them, plus any related shipping, handling and storage charges. One hundred percent (100%) of the Advertising Fees FTG received from its members during fiscal year 2024 was used for production and media placement expenses.
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, Floors To Go has specific obligations to its franchisees during the operation of the Floors To Go system. These obligations include selecting floor covering and window treatment products that meet Floors To Go's quality standards and negotiating with vendors to offer favorable pricing to Floors To Go members. Floors To Go also controls the management and disbursement of funds received as Advertising Fees. Additionally, Floors To Go provides approved artwork, print media presentations, direct mail flyers, promotional materials, point-of-sale formats, and audio and video presentations for approved advertising programs, offering information for marketing and local advertising at a reasonable cost to the franchisee. Floors To Go is expected to use commercially reasonable efforts to maintain the reputation of the Floors To Go system, maintain a wide variety of products at favorable prices, and defend the Marks licensed within the Floors To Go system. Floors To Go will also develop advertising materials and marketing programs during the term of the Membership Agreement and provide these to all Floors To Go members.
Floors To Go members are required to pay Advertising Fees, which are payable semi-annually in two equal payments of $1,500. These fees are dedicated to 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 Floors To Go's expenses not directly related to the development of these materials and programs. Floors To Go has discretion over the creative concepts, materials, endorsements, market and media selection, and the allocation of resources for these advertising programs. The Advertising Fees may be used to cover costs for preparing customizable artwork, print media, television and radio commercials, market research, public relations, and Floors To Go's related administrative expenses. One hundred percent of the Advertising Fees Floors To Go received from its members during fiscal year 2024 was used for production and media placement expenses, and none were used to solicit new franchise sales.
Floors To Go also provides a website on the domain www.floorstogo.com for each Floors To Go Showroom, with access to additional customizable pages, subject to Floors To Go's review and approval. Floors To Go reserves the right to charge a fee for additional website features and benefits to cover development, implementation, and maintenance costs. Floors To Go may require franchisees to include "Floors To Go" in their fictitious trade name and exterior signage. If a franchisee develops an independent website, it must comply with Floors To Go's trademark, service mark, logo, and advertising requirements, and Floors To Go must provide prior written approval of the domain name, home page addresses, hyperlinks, and other links. A hyperlink to the franchisee's independent website will be placed on the Floors To Go website if the franchisee includes "Floors To Go" in their fictitious trade name and makes it a permanent part of their exterior signage.
Floors To Go may offer seminars focused on topics of interest to members, such as sales and marketing techniques, retail management best practices, new product offerings, and Internet applications. Members may voluntarily participate in these seminars, and the subjects taught, formats, and venues may vary from year to year. Floors To Go also may hold conferences or conventions to discuss matters such as sales techniques, product selection and costs, performance standards, advertising programs, new products, and operational modifications and updates. Franchisees must attend Floors To Go's annual convention. Floors To Go will bear the cost of the franchisee's registration fee for the first convention, but the franchisee must pay all related travel, lodging, and other personal expenses. Franchisees must also attend subsequent annual conventions and pay a registration fee, as well as all related travel, lodging, and other personal expenses. During the past 12 months, one hundred percent of new members enrolled in voluntary training programs and elective conferences and conventions.