Floors To Go

The franchise fee of $10,000 is substantially lower than the typical range of $45,000-$59,900 for home services franchises. What is included in this lower fee, and are there additional required upfront investments not reflected in the franchise fee?

System unit count decreased from 161 to 150 units over the past year, a 6.8% decline. Can you provide specific reasons for the 18 unit closures in 2024 and explain whether these were primarily performance-related or market-driven?

The Financial Performance score (40/100) falls significantly below the typical range of 54.0-60.0. Does the company provide Item 19 financial performance data, and if so, what are the median and average unit volumes for established franchisees?

There is 1 litigation case against the franchisor in the past 3 years. Can you describe the nature of this case, its current status, and any settlements or judgments that resulted?

The non-compete clause specifies 0 years and 0 miles of protection. What restrictions, if any, prevent franchisees from competing with the system after franchise termination or expiration?

The total potential contract term is 5 years with no renewal options disclosed. Are renewals available at the end of the initial 5-year term, and under what conditions would the franchisor decline renewal?

Transfer fees are $5,000, below the typical range of $7,500-$15,000. What is included in the transfer fee, and are there additional costs for franchisor approval of a franchisee transfer?

The System Health score is 28/100, falling well below the typical range of 50.0-70.0. What metrics comprise this score, and what specific actions is the franchisor taking to improve system stability?

The termination rate is 0.7%, while the exit rate is 12.0%. Can you clarify what percentage of departing franchisees are not renewing their agreements versus being terminated for cause?

Territory is marked as exclusive with encroachment protection. Has the franchisor ever opened company-owned locations or granted overlapping territories within existing franchise areas?

The 3-year compound annual growth rate (CAGR) is -0.2%. What is the franchisor's growth strategy, and do you have targets for returning to positive unit growth?

Renewal conditions count of 3 is below the typical range of 6.0-9.0. What are the specific conditions a franchisee must meet to renew their franchise agreement?

The renewal fee is $750. Does this fee apply automatically upon renewal, or only if conditions are not met? Are there additional fees or re-training requirements upon renewal?

Can you provide a detailed breakdown of the typical initial investment required to open a Floors To Go franchise, including working capital, equipment, inventory, and other startup costs?

The dispute resolution clause mandates binding arbitration with waivers of class action and jury trial rights. What is the rationale for these provisions, and what recourse do franchisees have if disputes arise?

Of the 18 units that closed in 2024, how many were owned by the same franchisee or in the same geographic area, and were there common factors contributing to their closure?

What training and ongoing support are provided to franchisees, and how frequently are support metrics evaluated given the System Health score of 28/100?

The Investment Cost score is 95/100, above the typical range of 74.0-75.0. Why is this category scoring so much higher, and what does this indicate about the cost structure relative to peers?