What was the revenue from the sale of franchise licenses for Floors To Go in 2023?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
I am unable to provide the specific revenue from the sale of franchise licenses for Floors To Go in 2023, as this information is not present in the provided excerpts from the 2025 Franchise Disclosure Document. While the excerpts discuss the nature of Floors To Go's business, revenue recognition practices, and general financial statements, they do not include a specific breakdown of revenue derived solely from the sale of franchise licenses. The financial statements included in the excerpts provide an overview of cash flows and income, but do not itemize revenue sources in sufficient detail to isolate franchise license sales.
Item 23 of the FDD typically includes detailed information on receipts, including revenue from franchise fees. However, the excerpts provided do not contain the necessary figures to answer this question. The available information focuses on how Floors To Go recognizes revenue, which includes service fees, advertising fees, and brokerage fees, in addition to franchise license sales. The FDD states that revenue from franchise license sales is recognized over the term of the franchise agreement, but it does not specify the exact amount recognized in 2023.
A prospective franchisee should directly request this specific revenue information from Floors To Go. Understanding the revenue generated from franchise sales can provide valuable insight into the company's growth and the demand for its franchise opportunities. This information, combined with other financial data, can help potential franchisees make an informed decision.