What is the primary benefit of the Floors To Go system regarding inventory?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
This concept is such that a member of the FTG System can offer a wide variety of quality floor covering and window treatment products to the consumer by selling from samples and then purchasing merchandise necessary to supply a particular consumer's needs at special prices negotiated by FTG from designated vendors. The concept eliminates the need to maintain a substantial inventory of floor covering and window treatment products. The special orders of merchandise sold are obtained from FTG-approved floor covering and window treatment vendors at prices that normally are less than those available to a store not participating in the FTG System.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–9)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the primary benefit of the Floors To Go system is the elimination of the need to maintain a substantial inventory of floor covering and window treatment products. Floors To Go members sell from samples and then purchase merchandise necessary to supply a particular consumer's needs. Floors To Go negotiates special prices from designated vendors.
This system allows a Floors To Go franchisee to offer a wide variety of products without the financial burden and logistical challenges of storing large quantities of inventory. This can significantly reduce overhead costs associated with warehousing, potential spoilage or obsolescence of products, and the need for extensive inventory management systems.
The FDD states that the special orders of merchandise sold are obtained from FTG-approved floor covering and window treatment vendors at prices that are normally less than those available to a store not participating in the FTG System. This suggests that franchisees benefit from the franchisor's bulk purchasing power and negotiated discounts, further enhancing profitability and competitiveness.