What is the timeframe for a Floors To Go franchisee to meet the minimum purchase requirement?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
l any floor covering or window treatment products on or through any Internet Web Site or Domain Name.
Continuation of your franchise or territorial rights is not directly dependent upon achievement of certain sales volume, market penetration or other contingency. However, you must 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. 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 achieve the volume purchase requirements set forth in Subsection 7.1(a) of the Membership Agreement does give FTG the
Source: Item 12 — TERRITORY (FDD pages 27–30)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, a franchisee must meet a minimum purchase requirement during the calendar year following the opening of each showroom. Specifically, the franchisee must purchase a minimum of $350,000 or 80% of their total floor covering and window treatment purchases through the FTG System, whichever amount is greater. Only floor covering and window treatment products that Floors To Go designates as part of the FTG System qualify towards these minimum purchase requirements.
This requirement has significant implications for a new Floors To Go franchisee. It means that within the first year of operation, the franchisee needs to achieve a substantial sales volume through the franchisor's designated system. Failing to meet this minimum purchase volume can lead to termination of the Membership Agreement, as stated in Subsection 13.2(b)(4). This clause incentivizes franchisees to prioritize purchases through the FTG System to maintain their franchise rights.
Franchisees should carefully consider their ability to meet this purchase threshold based on their market analysis and projected sales. It is crucial to understand which products qualify under the FTG System to accurately plan inventory and sales strategies. The franchisee bears the risk of termination if they cannot meet the minimum purchase requirement, making it a critical aspect of the franchise agreement to understand and plan for.