To utilize the Floors To Go system, what must a franchisee purchase?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
ed Purchases, Purchase Restrictions and Approved Suppliers**
In order to utilize the FTG System, you must purchase a certain amount of merchandise from the floor covering vendors or manufacturers with 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 determining whether to renew or grant additional showroom memberships.
Since the Floors To Go membership concept is intended for and directed toward the experienced owner/operator of existing floor covering stores, there are no purchases required to establish a FTG franchise. FTG estimates that required purchases are approximately thirty-seven percent (37%) of total purchases made in operating a FTG franchise.
You are prohibited from participating in any other marketing and merchandising system which offers products similar to those offered by FTG while a member of the FTG System (i.e., mill-sponsored programs or buying groups). However, you are permitted to purchase floor covering merchandise sold in your Showrooms from floor covering sources that are not affiliated with the FTG System, provided that you satisfy the minimum purchase requir
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, to utilize the Floors To Go system, a franchisee must purchase a certain amount of merchandise from approved floor covering vendors or manufacturers. Specifically, Section 7.1 of the Membership Agreement requires franchisees to purchase a minimum of $350,000 or 80% of their total floor covering and window treatment purchases, whichever is greater, through the Floors To Go system during the calendar year following the opening of each showroom. This requirement applies to each showroom for Multiple Showroom Members.
Only floor covering and window treatment products designated as part of the Floors To Go system qualify towards meeting the minimum purchase requirements. Failure to meet these minimum purchase requirements could result in the termination of the franchisee's membership in the Floors To Go system. Compliance with these purchase requirements may also be considered when determining whether to renew the membership or grant additional showroom memberships.
However, the FDD states that since the Floors To Go membership concept is intended for experienced owners/operators of existing floor covering stores, there are no initial purchases required to establish a Floors To Go franchise. The FDD estimates that required purchases are approximately 37% of total purchases made in operating a Floors To Go franchise. Franchisees are prohibited from participating in other marketing and merchandising systems offering similar products while a member of the Floors To Go system, but they are permitted to purchase floor covering merchandise from sources not affiliated with Floors To Go, provided they meet the minimum purchase requirements.