What is the primary responsibility of Floors To Go regarding advertising materials?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
For administrative convenience: (1) we will control the management and disbursement of the funds received as Advertising Fees, as defined in Section 6.4 of this Agreement; (2) we will serve as the advertising agency primarily responsible for creating and developing the advertising materials (e.g., artwork, print media presentations, direct mail flyers, promotional materials, point-of-sale formats, audio and video presentations) which we deem appropriate for the membership advertising programs; (3) we will be authorized and available to provide local or regional advertising placement services to all members upon request and be compensated for our placement services at a rate not in excess of fifteen percent (15%) of the cost of the requested advertising; and (4) we will, upon request, provide advertising consulting and media planning services to you or groups of members for a mutually agreed upon fee.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, Floors To Go's primary responsibility regarding advertising materials is to manage and disburse funds received as Advertising Fees. Floors To Go will also serve as the advertising agency primarily responsible for creating and developing the advertising materials which they deem appropriate for the membership advertising programs. These materials include artwork, print media presentations, direct mail flyers, promotional materials, point-of-sale formats, and audio and video presentations.
Floors To Go is authorized and available to provide local or regional advertising placement services to all members upon request. Floors To Go will be compensated for their placement services at a rate not in excess of fifteen percent (15%) of the cost of the requested advertising. Floors To Go will, upon request, provide advertising consulting and media planning services to franchisees or groups of franchisees for a mutually agreed upon fee.
This arrangement centralizes advertising efforts under Floors To Go, potentially ensuring brand consistency and leveraging economies of scale. However, franchisees should be aware of the 15% fee for advertising placement services and the possibility of mutually agreed upon fees for consulting and media planning. Franchisees also need to be aware that if they develop or purchase internet-based advertising, they must comply with Floors To Go's trademark, service mark, logo, and advertising requirements, as well as any of their other applicable policies and procedures.
Floors To Go also provides franchisees with a website maintained by them on the domain www.floorstogo.com for each of the franchisee's FTG Showrooms. Floors To Go reserves the right to charge a fee to assist in covering costs for additional features and benefits that may be added to the website, including, but not limited to, the costs of developing, implementing and maintaining said features and benefits.