Flooring Coverings Worldwide Franchise Prices, Charges, Revenues, Income (2023 Evaluation)

Part I – Estimated preliminary funding (franchise prices) for a Flooring Coverings Worldwide franchise, primarily based on Merchandise 7 of the corporate’s 2023 FDD

Part II – Preliminary franchise payment, royalty payment, and advertising and marketing payment for a Flooring Coverings Worldwide franchise, primarily based on Objects 5 and 6 of the corporate’s 2023 FDD

Part III – Variety of franchised and company-owned Flooring Coverings Worldwide shops in the beginning of the 12 months and the top of the 12 months for 2020, 2021, and 2022, primarily based on Merchandise 20 of the corporate’s 2023 FDD

Part IV – Information updates on the Flooring Coverings Worldwide franchise alternative

Part V – Presentation and evaluation of Flooring Coverings Worldwide’s monetary efficiency representations (common revenues and/or income), primarily based on Merchandise 19 of the corporate’s 2023 FDD, together with data on the:

• 2022 common gross income produced, gross income landed, leads, proposals, job dimension, success charge, slippage charge, and gross margin % for the highest 10%, high 25%, high 50%, backside 50%, backside 25%, backside 10%, and all 109 Flooring Coverings Worldwide franchisees that had been open and working for greater than 24 months as of December 31, 2022 and for whom Flooring Coverings Worldwide has full gross sales information

• 2022 common job dimension, success charge, slippage charge, and gross margin % for the 40 Flooring Coverings Worldwide franchisees that had been open and working for lower than two years however a couple of 12 months, and 109 Flooring Coverings Worldwide franchisees that had been open and working for greater than 24 months as of December 31, 2022 and for whom Flooring Coverings Worldwide has full gross sales information

Part VI – Key ratios, comparables, computations, and analyses for the Flooring Coverings Worldwide franchise alternative (unique content material for Platinum subscribers)

Part I – Flooring Coverings Worldwide Franchise Prices

• Flooring Coverings Worldwide franchise prices, primarily based on Merchandise 7 of the corporate’s 2023 FDD:

• Preliminary Franchise Payment:  $50,000
• Inspirenet/Inspirenet Cellular:  $7,500
• Software program Entry Payment (2 months):  $400 to $600
• Coaching Associated Bills:  $3,000 to $5,000
• Opening Package deal:  $35,000 to $45,000
• Personnel/Staffing:  $0 to $5,000
• Preliminary Promoting Bills:  $40,000 to $60,000
• Insurance coverage (Legal responsibility/Automobile):  $1,500 to $6,000/12 months
• Miscellaneous Opening Prices:  $2,000 to $5,000
• FCI Automobile:  $1,000
• Workplace Gear:  $1,000 to $5,000
• Actual Property and Enhancements:  $0 to $5,000
• Further Startup Funds (6 months):  $10,000 to $25,000
• Complete Estimated Flooring Coverings Worldwide Franchise Prices:  $151,400 to $220,100

Part II – Flooring Coverings Worldwide’s Preliminary Franchise Payment, Royalty Payment, and Advertising and marketing Payment

• Flooring Coverings Worldwide’s preliminary franchise payment, royalty payment, and advertising and marketing payment, primarily based on Objects 5 and 6 of the corporate’s 2023 FDD:

• Preliminary Franchise Payment:  $50,000
• Persevering with Royalty Payment:  the better of 5% of Gross Gross sales or $833 monthly in your first 12 months of operations (entire or partial), $1,250 monthly for months 13 by means of 24 of operations, or $1,667 monthly thereafter (Minimal Royalties)
• Model Fund Contribution (“Promoting Contribution”):  3% of Gross Gross sales
• Native Promoting:  a minimal of 6% of Gross Gross sales
• Regional Promoting and Promotional Cooperative (“Cooperative”) Contribution:  if relevant, the then-current payment as decided by the Cooperative; presently, not more than 2% of Gross Gross sales

Part III – Variety of Franchised and Firm-Owned Flooring Coverings Worldwide Shops

Franchised

2020

• Shops on the Begin of the Yr:  159
• Shops on the Finish of the Yr:  171
• Internet Change:  +12

2021

• Shops on the Begin of the Yr:  171
• Shops on the Finish of the Yr:  197
• Internet Change:  +26

2022

• Shops on the Begin of the Yr:  197
• Shops on the Finish of the Yr:  215
• Internet Change:  +18

Firm-Owned

2020

• Shops on the Begin of the Yr:  0
• Shops on the Finish of the Yr:  0
• Internet Change:  0

2021

• Shops on the Begin of the Yr:  0
• Shops on the Finish of the Yr:  0
• Internet Change:  0

2022

• Shops on the Begin of the Yr:  0
• Shops on the Finish of the Yr:  0
• Internet Change:  0

Part IV – Information Updates on the Flooring Coverings Worldwide Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Income) for the Flooring Coverings Worldwide Franchise (Merchandise 19, 2023 FDD)

• This Merchandise units forth sure historic information submitted by Flooring Coverings Worldwide franchisees.

• As set forth in every desk under, this Merchandise discloses sure data for every of the Reporting Franchisees, and never for discrete companies or territories. Some Reporting Franchisees might personal a couple of enterprise and/or function in a couple of territory.

• Flooring Coverings Worldwide has not audited this data, nor independently verified this data.

• The data is for the interval of January 1, 2022 by means of December 31, 2022 (the “Measurement Interval”).

• This Merchandise presents sure data for Flooring Coverings Worldwide’s 149 U.S. franchisees that had been open for the total Measurement Interval, and excludes data from 63 franchisees that weren’t open for the total Measurement Interval, in addition to 3 franchisees that (i) don’t report utilizing Flooring Coverings Worldwide’s present commonplace software program, or use it inconsistently, and thus for whom Flooring Coverings Worldwide doesn’t have full gross sales information, or (ii) don’t function the franchise as a full time enterprise.

Half 1 – Gross Income Produced, Gross Income Landed, and Common Job Data

• This desk presents the Gross Income Produced, Gross Income Landed, and sure Job Data as reported to Flooring Coverings Worldwide by its 109 U.S. franchisees that had been open and working for greater than 24 months as of December 31, 2022 and for whom Flooring Coverings Worldwide has full gross sales information (the “Reporting Franchisees”).

• This desk excludes franchises (a) who had not been open and working for a full 24 months as of December 31, 2022, (b) for whom Flooring Coverings Worldwide doesn’t have full gross sales information, and (c) that don’t function the franchise as a full time enterprise.

• For the needs of this Merchandise 19, a franchisee is deemed to have operated lower than full time if the franchisee was not working for not less than one full calendar month through the Measurement Interval.

• Knowledge for startup franchisees who weren’t open and working for a full 24 months as of December 31, 2022 was excluded from this desk.

• The next desk presents the common Gross Income Produced, Gross Income Landed, and sure Job Data for the 109 Reporting Franchisees through the Measurement Interval. Flooring Coverings Worldwide has damaged down the information into 5 teams (every, a “Group”) primarily based on the Reporting Franchisees’ Gross Income Produced, as additional described under.

High 10%

• Variety of Reporting Franchisees:  11
• Common Gross Income Produced:  $3,292,848
• Common Gross Income Landed:  $3,552,602
• Leads:  1,394
• Proposals:  788
• Common Job Dimension:  $8,151
• Success Price:  57%
• Slippage Price:  41%
• Gross Margin %:  45%

High 25%

• Variety of Reporting Franchisees:  27
• Common Gross Income Produced:  $2,276,311
• Common Gross Income Landed:  $2,457,131
• Leads:  1,323
• Proposals:  638
• Common Job Dimension:  $7,993
• Success Price:  49%
• Slippage Price:  49%
• Gross Margin %:  46%

High 50%

• Variety of Reporting Franchisees:  55
• Common Gross Income Produced:  $1,655,619
• Common Gross Income Landed:  $1,763,753
• Leads:  1,148
• Proposals:  503
• Common Job Dimension:  $8,380
• Success Price:  42%
• Slippage Price:  55%
• Gross Margin %:  46%

Backside 50%

• Variety of Reporting Franchisees:  54
• Common Gross Income Produced:  $557,335
• Common Gross Income Landed:  $587,071
• Leads:  578
• Proposals:  230
• Common Job Dimension:  $7,529
• Success Price:  40%
• Slippage Price:  54%
• Gross Margin %:  45%

Backside 25%

• Variety of Reporting Franchisees:  27
• Common Gross Income Produced:  $394,610
• Common Gross Income Landed:  $405,680
• Leads:  463
• Proposals:  188
• Common Job Dimension:  $6,524
• Success Price:  41%
• Slippage Price:  51%
• Gross Margin %:  44%

Backside 10%

• Variety of Reporting Franchisees:  11
• Common Gross Income Produced:  $297,274
• Common Gross Income Landed:  $305,706
• Leads:  419
• Proposals:  176
• Common Job Dimension:  $5,959
• Success Price:  37%
• Slippage Price:  53%
• Gross Margin %:  45%

All Reporting Franchisees

• Variety of Reporting Franchisees:  109
• Common Gross Income Produced:  $1,111,515
• Common Gross Income Landed:  $1,180,809
• Leads:  865
• Proposals:  367
• Common Job Dimension:  $7,958
• Success Price:  41%
• Slippage Price:  54%
• Gross Margin %:  45%

• Gross Income Produced is outlined as a franchisee’s whole gross sales invoices or different gadgets or providers billed to the shopper for all “Accomplished Gross sales”, much less reductions, cancellations, or returns by Flooring Coverings Worldwide. Gross sales of services are deemed to be Accomplished Gross sales for functions of reporting to Flooring Coverings Worldwide when the franchisee completes the ultimate set up of all services or products bought to the shopper.

• Gross Income Landed is outlined as Gross Income Produced (besides as set forth under), plus the whole gross sales invoices or providers billed to prospects for all ongoing jobs the place franchisee has not but accomplished remaining set up however has been engaged by the shopper and has begun to offer the services requested. Particularly omitted from Gross Income Landed is any quantity of Gross Income Produced from the availability of services or products which had been ordered, invoiced, or first billed for through the previous calendar 12 months (2021).

• Leads are all inquiries that the franchisee acquired from potential prospects to offer the permitted services.

• Proposals is the variety of estimates, bids, and different proposals generated and delivered by a franchisee to offer merchandise and/or providers to prospects.

• Common Job Dimension is outlined as the whole Gross Income Produced of all jobs in every working class divided by the variety of jobs carried out by franchisees in every working class.

• Common Success Price is the common share of jobs landed over the variety of first proposals.

• Common Slippage Price is the common share of Proposals over the variety of Leads.

• Gross Margin is the share of revenue within the jobs carried out by franchisees, which is calculated by subtracting product and set up prices from income, dividing the end result by income, and changing right into a share.

• As of December 31, 2022, 12 Reporting Franchisees operated in two or extra discrete territories, and over 100 franchisees function outdoors of their territories in areas that in lots of circumstances are as giant as, or bigger than, the whole space served by franchisees working in two separate territories.

• Sure Reporting Franchisees have been granted the suitable to carry out providers for residential jobs wherein the combination contract quantity exceeds $50,000, or some other flooring providers not particularly recognized as Residential Companies within the disclosure doc, together with however not restricted to any flooring providers for companies or different business buildings, inns, or tutorial establishments (“Industrial Companies”).

• Upon signing Flooring Coverings Worldwide’s Industrial Companies Addendum, completion of Flooring Coverings Worldwide’s Industrial Coaching Program, and satisfaction of such different circumstances as Flooring Coverings Worldwide might require, you may be certified to offer Industrial Companies.

Half 2 – Sure Job Data for Begin-Up and Mature Companies

• The next desk presents the Common Job Dimension, Success Price, Slippage Price, and Gross Margin for 36 of Flooring Coverings Worldwide’s franchisees open lower than two years however a couple of 12 months, and 109 of Flooring Coverings Worldwide’s franchisees open and working for greater than two years, as of December 31, 2022, that reported information in these classes to Flooring Coverings Worldwide.

• This desk excludes franchises (a) who had not been open and working for a full 12 months as of December 31, 2022, (b) for franchisees who don’t report utilizing Flooring Coverings Worldwide’s present commonplace software program, or use it inconsistently, and thus for whom Flooring Coverings Worldwide doesn’t have full gross sales information, and (c) that don’t function the franchise as a full time enterprise.

Over 2 Years in Operation

• Variety of Franchises:  109
• Common Job Dimension:  $7,958
• Success Price:  41%
• Slippage Price:  54%
• Gross Margin %:  45%

Much less Than 2 Years, However Extra Than 1 Yr in Operation

• Variety of Franchises:  40
• Common Job Dimension:  $6,312
• Success Price:  34%
• Slippage Price:  63%
• Gross Margin %:  44%

• This evaluation doesn’t comprise data regarding working prices or bills.

• Some shops have bought these quantities. Your particular person outcomes might differ. There is no such thing as a assurance you’ll promote as a lot.

Part VI – Flooring Coverings Worldwide Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers) ⬇️