What does Section 7.1 of the Floors To Go Membership Agreement require?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
h 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 determinin
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 33)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, Section 7.1 of the Membership Agreement stipulates that franchisees must purchase a minimum amount of merchandise through the FTG System. Specifically, for each showroom, a franchisee is required to purchase either $350,000 or 80% of their total floor covering and window treatment purchases through FTG-approved vendors during each calendar year following the showroom's opening, whichever amount is greater. Only products designated by Floors To Go as part of the FTG System qualify toward meeting this minimum purchase requirement.
This requirement has significant implications for a prospective Floors To Go franchisee. It ensures that franchisees actively participate in the FTG System and utilize the negotiated pricing and vendor relationships established by the franchisor. By mandating a minimum purchase volume, Floors To Go aims to maintain consistency and quality across its franchise network while also leveraging its collective buying power.
Failure to meet the minimum purchase requirements outlined in Section 7.1 can lead to termination of the Membership Agreement, as stated in Subsection 13.2(b)(4). Additionally, compliance with these purchase requirements may be considered when Floors To Go decides whether to renew a membership or grant additional showroom memberships. This creates a direct link between a franchisee's purchasing behavior and their long-term standing within the Floors To Go franchise system.
While franchisees are permitted to purchase floor covering merchandise from sources not affiliated with the FTG System, they must still satisfy the minimum purchase requirements set forth in Section 7.1. This provides some flexibility for franchisees to source products outside the FTG System, but it also ensures that a substantial portion of their purchases are made through approved channels. Floors To Go will regularly update its price list to inform franchisees of current approved vendors and manufacturers, product selections, negotiated prices, and vendor distribution arrangements.