What is the relationship between Floors To Go and its franchisees?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
Floors To Go, LLC, a Florida LLC (the "Company"), is in the business of selling franchise licenses and providing various support services to franchisees operating in the retail floor covering industry located throughout the United States.
We will regularly inform you as to the approved vendors and manufacturers, floor covering selections and grades, the vendor's prices therefor, the vendor's distribution arrangements, and other pertinent information.
We will research the market for the purpose of evaluating the floor coverings, and other window treatment products offered and discounts available so that we may continually update our list of approved merchandise and approved vendors
This disclosure document summarizes certain provisions of the franchise agreement and other information in plain language. Read this disclosure document and all agreements carefully.
If Floors To Go, LLC offers you a franchise, Floors To Go, LLC must provide this disclosure document to you fourteen (14) calendar days (or sooner, if required by applicable state law) before you sign a binding agreement with, or make a payment to, us or an affiliate in connection with the proposed franchise sale.
Revenues are primarily derived from service fees, member advertising fees, and brokerage fees from certain floor and window covering manufacturers utilized by the franchisees. The performance obligation related to these services is met over the terms of the franchise agreement. In certain circumstances fees collected are deferred and recognized over time as the related performance obligations are satisfied.
The Company also recognizes a portion of revenue from the sale of franchisee licenses at the time a contract between the Company and the franchisee is executed; additional license revenue is received in installments over a period of up to five years. The performance obligation related to the sale of a franchisee license is met over the terms of the franchise agreement.
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, LLC grants franchise licenses to franchisees, allowing them to operate in the retail floor covering industry. Floors To Go provides support services to these franchisees. The relationship is governed by a franchise agreement, which outlines the obligations and responsibilities of both Floors To Go and the franchisee. The FDD also states that the disclosure document summarizes certain provisions of the franchise agreement and other information in plain language, emphasizing the importance of carefully reading the document and all related agreements. Prospective franchisees are required to receive the FDD at least fourteen calendar days before signing any binding agreement or making payments. This ensures they have sufficient time to review the terms and conditions.
Floors To Go generates revenue through various streams, including service fees, member advertising fees, and brokerage fees from floor and window covering manufacturers that franchisees utilize. The performance obligation related to these services is met over the terms of the franchise agreement. In certain circumstances, fees collected are deferred and recognized over time as the related performance obligations are satisfied. The company also recognizes revenue from the sale of franchisee licenses, with additional license revenue received in installments over a period of up to five years.
Floors To Go also provides ongoing support and information to its franchisees. This includes regularly informing franchisees about approved vendors and manufacturers, floor covering selections and grades, vendor prices, and distribution arrangements. Floors To Go conducts market research to evaluate floor coverings and other window treatment products, as well as available discounts, to continually update its list of approved merchandise and vendors. This ongoing support aims to help franchisees stay competitive and informed about the latest products and market trends.
Prospective franchisees should pay close attention to the franchise agreement and disclosure documents to fully understand their rights and obligations. They should also consider seeking legal and financial advice to ensure they are making an informed decision. Additionally, franchisees need to be aware of the specific state laws and regulations that may affect their franchise agreement, as highlighted by the additional disclosures required in states like Virginia and Wisconsin.