ABBEY CARPET CO., INC. Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$23,050 - $61,900
Franchise Fee
$2,000
Total US Locations
423
Business Summary
Abbey Carpet Co., Inc. offers a marketing and merchandising system to experienced owners and operators of existing floor covering stores. Abbey Carpet & Floor showrooms sell a wide variety of floor covering and window treatment products directly to consumers using product samples. Franchisees fulfill customer orders by purchasing merchandise from Abbey-approved vendors at special negotiated prices, which helps to minimize the need for them to maintain a substantial inventory.
Corporate History
Abbey Carpet Co., Inc. was founded in 1958 in California as a retail carpeting store. By 1966, the business had expanded to eleven stores and then transitioned its focus to operating solely as a buying service. Abbey Carpet Co., Inc. began franchising in 1971, becoming one of the first franchises registered under California's Franchise Investment Law. In 1996, the company merged into Abbey Carpet Co. of Florida, Inc., which subsequently adopted the name Abbey Carpet Co., Inc., signifying a change in the state of incorporation to Florida without altering its business, management, or ownership. Currently, Abbey Carpet Co., Inc. does not directly own or operate any retail floor covering outlets, with the exception of two Abbey Showrooms in Florida operated by an affiliate company owned by one of its officers.
Financial Overview
Investment Range
$23,050 - $61,900
Franchise Fee (Low)
$2,000
Franchise Fee (High)
$10,000
Equipment Costs (Low)
$7,900
Equipment Costs (High)
$26,500
Working Capital
$5,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Abbey Carpet Co., Inc. shows a slight decrease in overall financial strength from 2022 to 2023. Its working capital, which is the money available to cover short-term expenses, decreased slightly from about $2.95 million in 2022 to $2.92 million in 2023. Total revenues for Abbey Carpet Co., Inc. decreased from $14.7 million in 2022 to $13.78 million in 2023, and net income also saw a decline from $4.29 million to $2.83 million in the same period. Operating cash flow significantly decreased. Abbey Carpet Co., Inc. also carries substantial long-term debt, and guarantees related company debt that totaled over $7 million in 2023. While the independent auditors did not express concerns about Abbey Carpet Co., Inc.'s ability to continue operations, the FDD notes that the impact of global economic events on the company's financial performance remains uncertain.
Financing Details
Abbey Carpet Co., Inc. does not offer direct or indirect financing to its franchisees, with one exception: a deferred payment option for a portion of the Initial Membership Fee. Franchisees pay an initial $1,000 of the $10,000 fee upfront. The remaining $9,000 is paid through the Abbey CashBack Program, where Abbey Carpet Co., Inc. retains cash rebates earned by the franchisee from approved manufacturers. This arrangement lasts for up to five years, or until the $9,000 balance is collected, whichever comes first. No interest is charged on this deferred amount. If the membership agreement is terminated before the five-year period ends, any remaining balance of the $9,000 fee becomes immediately due in cash, and Abbey Carpet Co., Inc. may charge attorney's fees and collection costs. Abbey Carpet Co., Inc. does not arrange or guarantee financing from outside sources for its franchisees.
Performance Metrics
Total US Locations
423
Franchised Units
420
Corporate Units
3
Franchising Since
1971
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Bankruptcy History
Abbey Carpet Co., Inc. has no bankruptcy history to report. No person or company identified in Items 1 or 2 of the Franchise Disclosure Document, nor any of their current or former officers, directors or principals, has been involved in any bankruptcy proceedings during the ten-year period immediately preceding the date of this Disclosure Document. Additionally, no such bankruptcy or reorganization proceedings have been commenced under the U.S. Bankruptcy Code.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their Abbey Carpet & Floor franchise, franchisees must provide Abbey with written notice by registered or certified mail at least sixty days before the current term expires. They must not be in default of any material term of their Membership Agreement or any other agreement with Abbey. Franchisees are required to sign the then-current Abbey System membership agreement, which may include different fee structures and territorial rights compared to their original agreement. Additionally, Abbey Carpet & Floor franchisees must pay a renewal fee of $750.
Training & Support Program
Franchisor Assistance
Abbey Carpet Co., Inc. assists its franchisees by providing advertising materials, price lists, and other documents related to the Abbey System. During operation, Abbey focuses on selecting floor covering and window treatment products that meet its quality standards and negotiating favorable pricing with vendors for its members. Abbey also provides approved artwork, print media presentations, direct mail flyers, promotional materials, point-of-sale formats, and audio/video presentations for approved advertising programs, though franchisees are responsible for customization costs. The company commits to maintaining the reputation of the Abbey System, offering a wide variety of products at favorable prices, and defending the Abbey Marks. Before opening, Abbey provides and delivers racks, displays, and samples needed to convert a showroom to an Abbey Showroom, along with a store design consultant for adaptation (excluding tenant improvement items). Abbey Carpet Co., Inc. does not provide site selection, business financing, employee training, or management supervision before or after agreement execution. Franchisees are required to attend an annual convention, with Abbey covering the first registration fee and franchisees paying travel and lodging. Voluntary seminars on sales, marketing, and management are also offered, for which members bear the expenses. Abbey maintains a website for each Abbey Showroom and offers advertising guidelines for internet-based advertising.
Ongoing Support
Abbey Carpet Co., Inc. provides ongoing support to its franchisees by continually selecting and negotiating with vendors to offer a wide variety of floor covering and window treatment products at favorable prices. Abbey develops and provides system-wide advertising materials and marketing programs, including approved artwork, print media, direct mail, point-of-sale formats, and audio/video presentations. The company also maintains a website for each Abbey Showroom, which may include customized pages if the franchisee uses "Abbey Carpet" or "Abbey Carpet & Floor" in their fictitious trade name. Abbey holds conferences and mandatory annual conventions to discuss sales techniques, product selection, costs, performance standards, and operational updates; franchisees must attend and cover travel and lodging expenses. Optional seminars on various business topics are also offered. Abbey does not offer a formal operations manual or initial training program, as its concept is directed toward experienced owner/operators of existing floor covering stores.
Franchise Requirements
Ideal Candidate Profile
Abbey Carpet Co. is seeking experienced owner/operators of existing floor covering stores. Ideal candidates should possess prior industry experience, operational expertise, and be capable of dedicating full-time effort to managing the Abbey showroom, either personally or through a showroom manager. Abbey Carpet Co. does not provide site selection, business financing, employee training, or management supervision, implying that the franchisee should already be proficient in these areas.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
limited
Staffing Notes
Abbey Carpet & Floor expects the franchisee or their designated showroom manager to dedicate full-time to the management and operation of the Abbey System. While there are no specific limitations on who can manage the Showroom, the manager must comply with all applicable laws and uphold the goodwill associated with the Abbey System and its trademarks. Franchisees are responsible for ensuring their showroom manager(s) fully adhere to the Membership Agreement, including safeguarding trade secrets and proprietary information. Additionally, Abbey Carpet & Floor requires franchisees to maintain a competent, conscientious, and qualified sales and installation staff. This staff must be trained in the types and quality of Abbey Carpet & Floor products, as well as be familiar with the price list, to effectively perform their duties. Abbey Carpet & Floor does not provide initial training, as the concept is directed towards experienced owner/operators of existing floor covering stores.