With a proven business model and low cost of ownership, the Floor Coverings International is disrupting the $48 billion residential flooring industry.
In this article, we’ll discuss everything about Floor Coverings International from what it requires to open a franchise to what the franchisor will provide you.
About Floor Coverings International
Floor Coverings International is a flooring provider that offers a personalized process to design the floor.
It was founded in the year 1988 by an entrepreneur who later built it into several franchises. In the year 2004, FirstService Brands of Toronto acquired the company, and Tom Wood became the CEO & President of the company.
The company mostly uses mobile van showrooms and provides a high-quality experience to their customers.
The types of flooring offered by the company are as follows:
- Carpet
- Hardwood Flooring
- Natural Stone Flooring
- Ceramic Tiles
- Laminate Flooring
- Vinyl Flooring
There are more than 3000 styles and colors of products that Floor Covering International offers to its customers.
Floor Coverings International- Franchise Model
| Initial franchise fees | $90,000 |
| Initial Investment | $151,400 – $220,100 |
| Networth required | $200,000 |
| Liquidity | $50,000 |
| Royalty | 5% |
| Ad Royalty fees | 3% |
How Much Does It Cost To Open Floor Coverings International Franchise?
To open Floor Coverings International franchise, you need a franchise fee of $50,000 and an initial investment of $151,400 – $220,100.
However, there are other costs that are also required to open the franchise.
| Expenditures | Standard Fee | Method of Payment | When Payable | To Whom Payment is Made |
| Initial Franchise Fee | $90,000 | Lump Sum or Installment | When you sign the Franchise Agreement | FCI |
| Additional Territory Fee (minimum of 2) | $40,000 each | Lump Sum or Installment | When you sign the Franchise Agreement | FCI |
| Inspirenet / Inspirenet Mobile Software | $7,500 | Lump Sum | 30 days prior to training | FCI |
| Software Access Fee (2 months) | $400 – $600 | Lump Sum | Monthly upon signing Franchise Agreement | FCI |
| Training Related Expenses | $3,000 – $5,000 | Varies | As incurred | Various third parties |
| Opening Package | $35,000 – $45,000 | Lump Sum | 30 days prior to training | FCI and third parties |
| Personnel / Staffing | $0 – $5,000 | As Agreed | As Agreed | Employees |
| Initial Advertising Expenses | $40,000 – $60,000 | Varies | Within 4 Months after training | Various third parties |
| Insurance Liability / Vehicle | $1,500 – $6,000/yr | Installment or Lump Sum | As incurred | Your Insurance Carrier |
| Miscellaneous Opening Costs | $2,000 – $5,000 | Varies | As incurred | Business licenses, utilities, phone |
| FCI Vehicle | $1,000 | Lump sum, finance or lease | Lump sum, finance, or lease | Our designated suppliers or third parties |
Office Equipment | $1,000 – $5,000 | Lump Sum | As incurred | According to the purchase option |
| Real Estate and Improvements | $0 – $5,000 | Varies | As incurred | Various third parties |
| Additional Startup Funds | $45,000 – 65,000 | As Incurred | As Incurred | Supplies, utilities, etc |
| TOTAL | $154,400 – $341,000 | |||
Floor Coverings International- Profit & Revenue
The top-performing franchisees of Floor Coverings International booked an average of $3.9 million in gross annual revenue in 2022.
The following is the breakdown of profit and revenue earned by Floor Coverings International franchisees:
| Group by Average Revenue Produced | Number of reporting franchisees | Average Gross Revenue Produced | Average Gross Revenue Landed | Leads | Proposals | Average Job Size | Success rate | Slipping rate | Gross Margin |
| Top 10% | 11 | $3,292,848 | $3,552,602 | 1,394 | 788 | $8,151 | 57% | 41% | 45% |
| Top 25% | 27 | $2,276,311 | $2,457,131 | 1,323 | 638 | $7,993 | 49% | 49% | 46% |
| Top 50% | 55 | $1,655,619 | $1,763,753 | 1,148 | 503 | $8,380 | 42% | 55% | 46% |
| Bottom 50% | 54 | $557,332 | $587,071 | 578 | 230 | $7,529 | 54% | 45% | 44% |
| Bottom 25% | 27 | $394,610 | $405,680 | 463 | 188 | $6,524 | 41% | 51% | 44% |
| Bottom 10% | 11 | $297,274 | $305,706 | 419 | 176 | $5,959 | 37% | 53% | 45% |
| All Reporting Franchisees | 109 | $1,111,515 | $1,180,809 | 865 | 367 | $7,958 | 41% | 54% | 45% |
Floor Coverings International- Terms & Conditions
To open Floor Coverings International franchise, you must have liquid capital of about $50,000 and a worth of $200,000.
In addition to the liquid capital and net worth, the franchisee should also keep in mind that this franchise doesn’t allow absentee ownership and can not be managed from a home/mobile unit.
Floor Coverings International- Training & Support
The company provides extensive training and support to franchisees to run their business successfully. Here is what to expect in the training and support from Floor Coverings International:
1. Pre-Training- 6 Weeks
Floor Covering International franchise training starts by providing you with a checklist of things you need to do.
This includes obtaining a business license, completing digital training, setting up your mobile showroom, and securing an office space.
Through this process, you’ll have regular calls with the company professional to provide answers to all your questions.
2. Training At Headquarters- 5 Days
The next step after the 6 weeks of training is to visit their headquarters in Atlanta, where you’ll be provided in-person training with the team members.
This training will include partaking in role-playing scenarios to get a better understanding of the sales process, receive CRM and marketing training
3. Headquarters Training 2.0
After the completion of the first three months, you’ll be required to visit the headquarter once again.
With 3 months of data in the company’s CRM, the company will help you pinpoint the areas of improvement and what is going well.
4. Marketing Support
- Co-op Advertising
- Ad Templates
- Regional Advertising
- Social Media
- SEO
- Website Development
- Email Marketing
Floor Coverings International- Financial Assistance
The company doesn’t provide direct financial assistance. However, it has relationships with third-party lenders.
Through these third-party lenders, you can avail the funds without any hassle. The funds provided will cover- the franchise fee, startup cost, equipment, inventory, accounts receivable, and payroll.
Conclusion
Flooring Coverings International is an excellent opportunity for anyone who is looking to run a well-established and successful franchise.
However, there are a few things that you need to keep in mind, such as the franchise fees, the initial investment required, and the liquid capital required by the company.
Also, carefully review the FDD document of the company. This includes 23 sections that provide you insight into who they are, what your responsibilities are as a franchisee, and what investments are required by the company.
FAQs
Does Floor Coverings International have eco-friendly flooring options?
Yes, Floor Covering International provides many options for environmentally responsible flooring.
Who owns Floor Coverings International?
FirstService Brands, one of America’s largest providers of property services, owns Floor Coverings International.
What is the annual revenue of Floor Coverings International?
The revenue of Floor Coverings International is $443 million.