What were the total operating expenses for Floors To Go in 2023?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
09 | | 51,761 | | revenue | | | | | Accrued | 260,669 | | 227,000 | | expenses | | | | | Total | 777,094 | | 856,940 | | liabilities | | | | | (all | | | | | current) | | | | | Member's | 549,866 | | 1,259,440 | | equity | | | | | Total | $ 1,326,960 | | $ 2,116,380 | | liabilities | | | | | and | | | | | member's | | | | | equity | | | |
The accompanying notes are an integral part of these financial statements.
Statements of Income and Member's Equity
| Year Ended December 31 | |||
|---|---|---|---|
| 2023 | 2022 | ||
| Revenue | |||
| Operating | $ 3,313,578 | $ 3,301,062 | |
| Sale | 13,451 | 5,000 | |
| of | |||
| franchise | |||
| licenses | |||
| Total | 3,327,029 | 3,306,062 | |
| revenue | |||
| Operating | |||
| expenses | |||
| Management | 800,000 | 800,000 | |
| fees ‐ related | |||
| party | |||
| Franchise | 474,154 | 418,488 | |
| related | |||
| costs | |||
| Commissions | 207,300 | 189,800 | |
| Travel, | 49,481 | 48,161 | |
| meals | |||
| and | |||
| entertainment | |||
| Professional | 44,403 | 55,813 | |
| services |
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the total operating expenses for the company in 2023 were $1,617,390. This figure is derived from the company's financial statements, which were audited by an independent auditor. These expenses encompass various costs associated with running the Floors To Go franchise system.
Specifically, the operating expenses include management fees to a related party amounting to $800,000, franchise related costs of $474,154, commissions totaling $207,300, and travel, meals, and entertainment expenses of $49,481. Additionally, professional services accounted for $44,403, credit losses amounted to $35,724, and general office expenses were $6,328. These individual components add up to the total operating expenses of $1,617,390 for Floors To Go in 2023.
Prospective franchisees should consider these operating expenses when evaluating the financial performance of Floors To Go. Understanding the nature and magnitude of these expenses can provide insights into the franchisor's cost structure and how it manages its resources. While this data reflects the franchisor's expenses, franchisees will have their own set of operating expenses to manage at the store level.