Floor Coverings International Franchise Cost & Profit 2024

With a proven business model and low cost of ownership, the Floor Coverings International is disrupting the $48 billion residential flooring industry.

Floor Coverings International

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

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:

  1. Carpet
  2. Hardwood Flooring
  3. Natural Stone Flooring
  4. Ceramic Tiles
  5. Laminate Flooring
  6. 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

Cost Or FeesAmount
Initial franchise fees$90,000
Initial Investment$151,400 – $220,100
Networth required$200,000
Liquidity$50,000
Royalty5%
Ad Royalty fees3%


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.

ExpendituresStandard FeeMethod of PaymentWhen PayableTo Whom Payment is Made
Initial Franchise Fee$90,000Lump Sum or InstallmentWhen you sign the Franchise AgreementFCI
Additional Territory Fee (minimum of 2)$40,000 eachLump Sum or InstallmentWhen you sign the Franchise AgreementFCI
Inspirenet / Inspirenet Mobile Software$7,500Lump Sum30 days prior to trainingFCI
Software Access Fee (2 months)$400 – $600Lump SumMonthly upon signing Franchise AgreementFCI
Training Related Expenses $3,000 – $5,000VariesAs incurredVarious third parties
Opening Package$35,000 – $45,000Lump Sum30 days prior to trainingFCI and third parties
Personnel / Staffing$0 – $5,000As AgreedAs AgreedEmployees
Initial Advertising Expenses$40,000 – $60,000VariesWithin 4 Months after trainingVarious third parties
Insurance Liability / Vehicle$1,500 – $6,000/yrInstallment or Lump SumAs incurredYour Insurance Carrier
Miscellaneous Opening Costs$2,000 – $5,000VariesAs incurredBusiness licenses, utilities, phone
FCI Vehicle$1,000Lump sum, finance or leaseLump sum, finance, or leaseOur designated suppliers or third parties

Office Equipment
$1,000 – $5,000Lump SumAs incurredAccording to the purchase option
Real Estate and Improvements$0 – $5,000VariesAs incurredVarious third parties
Additional Startup Funds$45,000 – 65,000As IncurredAs IncurredSupplies, 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 ProducedNumber of reporting franchiseesAverage Gross Revenue ProducedAverage Gross Revenue LandedLeadsProposalsAverage Job SizeSuccess rateSlipping rateGross Margin
Top 10%11$3,292,848$3,552,6021,394788$8,15157%41%45%
Top 25%27$2,276,311$2,457,1311,323638$7,99349%49%46%
Top 50%55$1,655,619$1,763,7531,148503$8,38042%55%46%
Bottom 50%54$557,332$587,071578230$7,52954%45%44%
Bottom 25%27$394,610$405,680463188$6,52441%51%44%
Bottom 10%11$297,274$305,706419176$5,95937%53%45%
All Reporting Franchisees109$1,111,515$1,180,809865367$7,95841%54%45%

If we assume a profit margin of 45%, then we can calculate that a Floor Coverings International franchise owner makes $1,755,000 in net profits on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%3900000.00
Rent6.88%(268125.00)
Insurance3.44%(134062.50)
Salaries13.75%(536250.00)
Franchise Royalty Fees3.44%(134062.50)
Utilities1.38%(53625.00)
Cost of Goods Sold (COGS)17.19%(670312.50)
Labor (Variable)8.94%(348562.50)
Total (Expenses)55.00%(2145000.00)
Net Profit45.00%1755000.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


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 headquarters 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


Payback Period Of Floor Coverings International

The estimated total profit of Floor Coverings International franchise owner is $1,755,000 per year, and the investment required is $220,100.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $220,100 / $1,755,000 = 0.12

Based on these figures, it will take approximately 12 months to pay back the initial investment for Floor Coverings International. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Floor Coverings International

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2020159171+12
2021171197+26
2022197215+18

For the Franchised outlets:

  • In 2020, the growth rate was (12)/159×100≈7.54%
  • In 2021, the growth rate was (26)/171×100≈15.20%
  • In 2022, the growth rate was (18)/197×100≈9.13%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Floor Coverings International grew from 2020 to 2022, showing a growth rate between 7.54% and 9.13%.

This implies that there is no risk associated with owning franchise of Floor Coverings International. However, you still need to do your reaserach to make a well-informed decision.


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.

For those looking to open a franchise in the home service or maintenance industry, possibilities include the Budget Blinds, Handyman Franchise, and the EverLine Coatings And Services Franchise.


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.

Where is the headquarters of Floor Coverings International?

The headquarters of Floor Coverings International is located in Smyrna, Georgia, United States.

How many locations does Floor Coverings International has?

Floor Covering International has 161 franchises operating throughout the United States and Canada.

Who founded Floor Coverings International?

Floor Covering International is a mobile floor-covering franchise company headed by President and CEO Tom Wood.

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