When does the Service Fee begin for a Floors To Go franchise?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
and, except as otherwise noted, collected by FTG.
- (2) The Service Fee will begin 90 days after you become a member. The purpose of the Service Fee is to offset a portion of the administrative costs associated with managing and servicing FTG's relationships with its members, including, without limitation, administrative costs connected to the FTG CashBack Program and FTG's merchandising programs, store design/Redesign (as defined below) programs and business-to-business programs.
- (3) FTG reserves the right to reasonably and uniformly increase or decrease the Service Fee and the Advertising Fee from time to time consistent with changes in the demands of the FTG System.
Source: Item 6 — OTHER FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the Service Fee begins 90 days after a franchisee becomes a member. The purpose of this ongoing fee is to offset administrative costs associated with managing and servicing Floors To Go's relationships with its members. These costs include those related to the FTG CashBack Program, merchandising programs, store design/Redesign programs, and business-to-business programs.
The Service Fee for a single showroom is $400, and it is due on the 10th day of each month. Floors To Go notes that all fees are uniformly imposed and collected by them, unless otherwise stated. Floors To Go also retains the right to reasonably and uniformly increase or decrease the Service Fee, consistent with the demands of the Floors To Go system, up to a maximum of $5,000.
Prospective franchisees should note that the Service Fee is non-refundable. Understanding the timing and amount of this fee is crucial for budgeting and financial planning. It is also important to recognize that Floors To Go may adjust the Service Fee, although it cannot exceed $5,000. This fee is in addition to other fees such as the Advertising Fee, Local Advertising costs, and potential audit fees.