Does Floors To Go require franchisees to purchase from specific vendors?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
ed Purchases, Purchase Restrictions and Approved Suppliers**
In order to utilize the FTG System, you must purchase a certain amount of merchandise from the floor covering vendors or manufacturers with whom FTG has negotiated favorable group prices and terms. Section 7.1 of the Membership Agreement requires you to purchase, for each of your Showrooms, a minimum of $350,000 or 80% of your total floor covering and window treatment purchases, whichever is greater, through the FTG System during the calendar year following the opening of each such Showroom. Therefore, Multiple Showroom Members are required to satisfy minimum purchase requirements for each of their Showrooms. Only those floor covering and window treatment products that FTG designates as part of the FTG System qualify towards the minimum purchase requirements. Failure to meet the minimum purchase requirements for your Showrooms could result in the termination of your membership in the FTG System. Compliance with the minimum purchase requirements could also be one factor, among others, when determining whether to renew or grant additional showroom memberships.
Since the Floors To Go membership concept is intended for and directed toward the experienced owner/operator of existing floor covering stores, there are no purchases required to establish a FTG franchise. FTG estimates that required purchases are approximately thirty-seven percent (37%) of total purchases made in operating a FTG franchise.
You are prohibited from participating in any other marketing and merchandising system which offers products similar to those offered by FTG while a member of the FTG System (i.e., mill-sponsored programs or buying groups). However, you are permitted to purchase floor covering merchandise sold in your Showrooms from floor covering sources that are not affiliated with the FTG System, provided that you satisfy the minimum purchase requirements set forth in Section 7.1 of the Membership Agreement.
FTG will regularly update its price list to inform you as to the current approved vendors and manufacturers, carpet and floor covering selections and grades, vendor's prices as negotiated by FTG, the vendor's distribution arrangements, and other pertinent information.
**B.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, franchisees are required to purchase a certain amount of merchandise from approved vendors. Specifically, Section 7.1 of the Membership Agreement mandates that franchisees purchase a minimum of $350,000 or 80% of their total floor covering and window treatment purchases, whichever is greater, through the FTG System during the calendar year following the opening of each showroom. This requirement applies to each showroom for franchisees with multiple locations. Failure to meet these minimum purchase requirements could result in the termination of the franchise agreement.
Floors To Go franchisees are permitted to purchase floor covering merchandise from sources not affiliated with the FTG System, provided they still meet the minimum purchase requirements from approved vendors. Floors To Go will regularly update its price list to inform franchisees of current approved vendors and manufacturers, carpet and floor covering selections and grades, vendor's prices as negotiated by FTG, the vendor's distribution arrangements, and other pertinent information.
Floors To Go also benefits from these vendor relationships. During fiscal year 2024, Floors To Go received $2,384,489 in brokerage fees from manufacturers and merchandise vendors participating in the FTG System, which represents approximately seventy-six percent (76%) of the $3,154,986 in total revenue that Floors To Go received. This indicates that vendor relationships are a significant revenue stream for the franchisor.