What does Floors To Go provide to convert a showroom to a Floors To Go showroom?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
tion, reasonable accounting and attorneys' fees).
- (8) FTG, at FTG's expense, will 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 retail 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. FTG estimates that the cost of the Redesign will be between Twenty Thousand Dollars ($20,000) and Fifty Thousand Dollars ($50,000) per Showroom, depending on the size of your Showroom. FTG will cover these costs of the Redesign (i.e., non-tenant-improvement-item costs); however, if your Membership Agreement is terminated prior to completion of the initial fiveyear term, you must pay FTG an early termination fee equal to the amount associated with the Redesign of your Showroom less 20% for each full year from the effective date of your Membership Agreement that you remained a member (the "Early Termination Fee"). For example, if you became a member on March 1, 2025, and the cost of your Redesign was $30,000, and your membership was terminated on January 1, 2028, you would owe us a cash payment equal to $18,000 ($30,000 – [$30,000 X (20% x 2) = $12,000] = $18,000). The Early Termination Fee shall be due and payable to FTG in cash immediately on the date of any such early termination. You will not be required to repay any portion of the cost to Redesign your Showroom if you remain a
Source: Item 6 — OTHER FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, Floors To Go provides specific support for converting an existing showroom to a Floors To Go branded showroom. Floors To Go will provide and deliver the necessary racks, displays, and samples to the franchisee's showroom. Additionally, Floors To Go will provide a retail store design consultant to assist with adapting the Floors To Go showroom design package to the franchisee's specific showroom. Floors To Go bears the expense for these items. These provisions are referred to as the "Redesign."
However, Floors To Go does not cover all conversion costs. Floors To Go will not purchase any tenant improvement items, including the installation of floor coverings in showrooms, furniture, or office equipment. The estimated cost for the Redesign ranges from $20,000 to $50,000 per showroom, depending on the showroom's size. This range refers to the costs Floors To Go covers, not the tenant improvement costs the franchisee must bear.
There is a financial implication if a franchisee terminates the Membership Agreement early. If the Membership Agreement is terminated before the initial five-year term is completed, the franchisee must pay Floors To Go an Early Termination Fee. This fee is equal to the cost associated with the Redesign of the showroom, less 20% for each full year from the effective date of the Membership Agreement that the franchisee remained a member. For example, if the redesign cost was $30,000 and the membership was terminated after two full years, the franchisee would owe $18,000. However, the franchisee will not be required to repay any portion of the redesign cost if they remain a Floors To Go member for the entire initial five-year term.