How Much Does a Floors To Go Franchise Owner Make?

Officially, it discloses no sales, gross profit, operating profit, EBITDA, net income, cash flow, owner compensation, or owner earnings. Item 19 says Floors To Go does not make representations about a member’s future financial performance or the past performance of franchised or company-owned outlets. That is an official 2026 FDD fact for the entire offered showroom population, not evidence that earnings are zero.

The Federal Trade Commission’s Franchise Rule guidance explains the framework for financial performance representations. Here, the absence of an Item 19 representation means a buyer cannot treat an online revenue estimate, a salesperson’s projection, or another flooring company’s margin as a franchisor-reported Floors To Go result.

The relevant population is an existing, independently owned floor-covering showroom that joins the FTG Marketing System, with optional use of the FTG Merchandising System. This is official FDD structure, not a newly built standardized retail box. Item 8 says the concept is intended for experienced owner-operators of existing floor-covering stores, while Item 15 permits either the owner or a full-time showroom manager to operate the business.

That conversion structure creates a major measurement problem: the total profit of the showroom is not the same as the incremental profit caused by Floors To Go membership. The 2026 FDD does not isolate the change in purchase cost, rebate income, advertising productivity, sales volume, or operating expense after conversion.

The estimate applies three published specialty-flooring-retail operating margins to three transparent revenue anchors, then subtracts $7,800 of fixed annual FTG fees. The result is estimated manager-run pre-tax owner earnings for one showroom. It is a scenario calculation, not a forecast or probability distribution.

The central revenue anchor is a cross-program calculation: the U.S. Census Bureau’s 2023 Annual Integrated Economic Survey reports $27.976 billion of sales for 2017 NAICS 442210, Floor covering stores, and the 2023 County Business Patterns profile reports 9,723 employer establishments. Dividing the totals produces about $2.88 million per employer establishment. Census does not publish that quotient as an average or median, and the two programs have different reporting units and scope conventions.

The scenario margins come from the official Tile Shop Holdings 2025 Form 10-K: operating income divided by net sales was approximately −1.73% in 2025, 1.01% in 2024, and 4.28% in 2023. Tile Shop is a company-operated specialty flooring retailer, not a Floors To Go franchisee. Its consolidated operating margin includes paid management, selling expense, occupancy, depreciation, and corporate overhead; it excludes interest and income taxes. The figures are used only as a transparent external sensitivity range.

In this model, active owner operation increases economic benefit by $94,670—the benchmark value of the general-manager labor the owner performs. That is an estimated labor substitution for the 2023 U.S. furniture and home-furnishings retail sector, not a salary promised by Floors To Go and not pure business profit.

Item 15, p. 26 says the member has no obligation to participate personally, but either the owner or the showroom manager is expected to devote full time to management and operation. The BLS industry-specific wage table reports a $94,670 annual mean wage for General and Operations Managers. BLS excludes self-employed workers, and the figure does not include employer payroll taxes, benefits, recruiting cost, or local wage variation.

Debt principal, personal income taxes, owner-specific benefits, distributions, and capital expenditures remain outside the figures. The comparable operating margin includes depreciation and excludes interest and income taxes. Floors To Go provides no standardized financing under Item 10, so debt service cannot be estimated responsibly without the buyer’s financed amount, rate, amortization term, and existing-store debt.

The model separately deducts $4,800 per year for the Service Fee and $3,000 per year for the Advertising Fee. Those are official recurring obligations for a single showroom under Item 6. The $10,000 Initial Membership Fee and the $23,050–$61,900 estimated initial investment are startup or entry amounts, not annual operating expenses, so they are not subtracted from one year of revenue.

Item 6 also says Floors To Go expects, but does not require, local advertising equal to 4%–6% of monthly Gross Sales per showroom. That percentage is not subtracted again in this model because the external operating-margin benchmark already includes normal selling, general, and administrative expense. Any local advertising burden materially above the comparable retailer’s embedded selling expense would reduce the modeled residual dollar-for-dollar.

Item 8 requires each showroom to purchase at least $350,000 or 80% of total floor-covering and window-treatment purchases, whichever is greater, through the FTG System in the calendar year following opening. This is a purchasing-volume rule, not a statement that cost of goods equals $350,000 or that the showroom will generate a particular gross margin.

• Included: comparable retailer cost of sales, payroll including a paid management structure, occupancy, selling and administrative costs, depreciation, and the fixed $7,800 annual FTG fee burden.
• Not added twice: a separate 4%–6% local advertising charge, because the all-in operating-margin benchmark already contains selling expense.
• Not modeled: optional website design of $60–$375 monthly, abnormal repairs, owner-specific benefits, cash rebates, remodeling, renewal or transfer fees, early-termination charges, and portfolio overhead.
• Not annualized: the Initial Membership Fee or Item 7 initial investment.
• Not deducted: interest, financing principal, personal income taxes, or future capital expenditures.

The largest uncertainty is the absence of same-brand showroom sales and profit data. The Census revenue quotient is an industry benchmark, and the SEC margin range comes from a public company with company-operated stores, corporate overhead, and a different merchandise,labor, real-estate, and installation model. Neither source measures Floors To Go members.

The most powerful operating driver is margin, not the fixed franchise fee. On $2.88 million of revenue, one percentage point of operating margin is roughly $28,800 before the fixed FTG fees. Small changes in merchandise gross margin, installation economics, payroll scheduling, occupancy, bad debt, advertising efficiency, or warranty work can therefore move annual residual profit by tens of thousands of dollars.

Revenue uncertainty is also material. The $2.88 million calculation combines aggregate AIES sales with CBP employer establishments under 2017 NAICS 442210. The current 2022 NAICS category 449121, Floor Covering Retailers, is the closest current classification, but local showrooms can differ substantially in square footage, product mix, commercial versus residential work, installation revenue, and market size.

Verify complete showroom-level profit-and-loss statements and reconcile every claim to Item 19 and written substantiation. The relevant period should cover multiple full years for a comparable existing showroom, not a short opening period or a selected high performer.

• Ask current and former franchisees listed in Item 20 and the exhibits for 2023–2025 Gross Sales, gross profit, operating income, owner compensation, and cash flow.
• Separate flooring merchandise revenue, installation revenue, window-treatment revenue, rebates, and other income.
• Confirm merchandise cost, installer or subcontractor expense, payroll burden, occupancy, insurance, local advertising, technology, and all FTG fees.
• Record whether the owner works full time, hires a showroom manager, or manages multiple locations; do not compare labor-inclusive benefit with passive residual profit.
• Identify closed, transferred, newly converted, remodeled, or noncomparable outlets rather than reviewing only continuing locations.
• Reconcile debt interest and principal separately, and obtain a capital-expenditure history for displays, signage, vehicles, equipment, and leasehold work.
• Request written substantiation for any financial projection and compare its population, period, format, and exclusions with the 2026 FDD’s Item 19 statement.

The strongest defensible answer is a scenario-based manager-run range of approximately −$48,000 to $140,000 per showroom annually, with an owner-operator benefit range of approximately $47,000 to $235,000. These are independent estimates with LIMITED confidence, not official Floors To Go results. The most important earnings driver is operating margin; the largest unresolved uncertainty is the lack of same-brand revenue and profit evidence—and, specifically, the lack of evidence separating total showroom profit from the incremental effect of FTG membership.

A buyer should verify the exact Item 19 language, obtain written substantiation for any financial claim, and interview comparable current and former franchisees using complete multi-year showroom financial statements. Revenue, business profit, owner labor compensation, debt service, and personal taxes must remain separate throughout that review.