Floor Coverings International Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$180,350 - $243,500
Franchise Fee
$47,700
Total US Locations
252
Business Summary
Floorcoverings International, Ltd. operates a mobile retail floor covering business that offers and installs soft and hard flooring products, along with window treatments. Floorcoverings International franchisees operate from a design-consultation studio and provide services at customer homes or businesses, bringing samples directly to them. The business primarily serves residential dwellings with fewer than five units, individual apartments/condos, single-family homes, townhomes, and light commercial office spaces under 5,000 square feet, with a contract limit of $50,000 per job for residential services. Floorcoverings International also offers a National Account Program and Commercial Services for larger projects to qualified franchisees.
Corporate History
Floorcoverings International, Ltd. was established as a Georgia corporation in February 1998. The company began offering franchises in the mobile retail floor covering business in the same year. Floorcoverings International operates under the brand names "Floor Coverings International" and "FCI". It is a subsidiary of FS Brands, Inc., which in turn is a subsidiary of FirstService Corporation, a diversified real estate services company. Floorcoverings International does not operate any company-owned outlets of the type it franchises.
Financial Overview
Investment Range
$180,350 - $243,500
Franchise Fee (Low)
$47,700
Franchise Fee (High)
$53,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$55,900
Equipment Costs (High)
$72,700
Working Capital
$27,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Floorcoverings International, Ltd. operates as a subsidiary of FS Brands, Inc., which is reported to be in a strong financial position. The auditors issued an unqualified opinion on the consolidated financial statements of FS Brands, Inc. for 2022 and 2023, indicating that the financial statements are presented fairly in all material respects. FS Brands, Inc. reported strong and increasing working capital, with $61,208,045 in 2023, up from $26,925,287 in 2022. The company also maintains a healthy cash position, with cash and cash equivalents rising to $74,395,379 in 2023 from $45,238,140 in 2022. Net income has been consistent, around $50 million for both 2022 and 2023. There are no indications of goodwill impairment or concerns about the company's ability to continue as a going concern, and no material unreserved tax issues.
Financing Details
Floorcoverings International may, at its discretion, finance a portion of the initial franchise fee, up to a maximum of $20,000, for franchisees. The repayment term for this financing is 3 years, with an interest rate of 8% APR. Monthly payments will vary, and there is no penalty for early prepayment. Franchisees must provide a personal guarantee for these obligations, and if a default occurs that is not cured, the entire loan becomes due, potentially leading to the termination of the franchise agreement. Floorcoverings International does not offer any other direct or indirect financing and does not guarantee any third-party loan obligations.
Performance Metrics
Total US Locations
252
Franchised Units
252
Corporate Units
0
Franchising Since
1998
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
6
Litigation Summary
Floorcoverings International initiated six lawsuits against former franchisees during the last fiscal year (2023). These cases were filed in the Northern District of Georgia or Gwinnett Magistrate Court, all for the collection of monies owed by the former franchisees. Floorcoverings International states that no other litigation is required to be disclosed in Item 3.
Bankruptcy History
Floorcoverings International has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Floorcoverings International franchisees must provide written notice of their intent to renew between 90 and 180 days before the agreement expires. They are required to sign Floorcoverings International's then-current franchise agreement, which may contain materially different obligations, including potentially increased fees, and must execute a general release of claims. Franchisees must not be in default of their existing franchise agreement, must be in possession of all required vehicles, equipment, and product samples that conform to current brand standards, and must successfully complete any required refresher training. A renewal fee of $2,500 is also due upon renewal.
Training & Support Program
Franchisor Assistance
Floorcoverings International provides comprehensive assistance to its franchisees, starting before the business opens. This includes designating a protected marketing area, providing an initial Opening Package with samples and marketing materials, and granting access to Operations Manuals. The initial training program, covered by the franchise fee, spans 6 weeks of home study, 2 weeks of in-person training before opening, an additional 1-week in-person training 90 days after opening, and a 3-day leadership training course once the first Design Associate is hired. Floorcoverings International also provides marketing materials and requires approval for any franchisee-developed advertising. Ongoing support involves regular updates to Operations and Marketing Manuals, access to a network of approved suppliers, continuous training opportunities, and mandatory attendance at an annual convention. Additionally, Floorcoverings International offers a toll-free help line for technical advice and marketing assistance and an intranet communication system (FCI Floor-1-1) with resources and direct communication channels. Franchisees are required to establish an approved office/warehouse (Studio) within their designated marketing area.
Initial Training Hours
200
Training Location
FCI headquarters in suburban Atlanta or virtually
Ongoing Support
Floorcoverings International provides ongoing support to its franchisees through various channels. This includes regular updates to the Operations Manuals and Marketing Manuals, reflecting new products, methods, and procedures within the FCI System. Franchisees have access to a list of approved suppliers and must obtain approval for any advertising materials they develop. Floorcoverings International manages a Brand Fund, supported by franchisee contributions, which is used for activities aimed at strengthening the brand, including national, regional, or local marketing, technology improvements, and market research. The franchisor may also establish and require participation in regional advertising cooperatives. Franchisees pay an annual maintenance and upgrade fee for the proprietary software system. Further support includes a toll-free help line for technical advice, product information, and marketing assistance, as well as an intranet system (FCI Floor-1-1) for online information, weekly newsletters, price lists, and communication with Floorcoverings International and other franchisees. Franchisees are also required to attend an annual convention and may participate in additional training for new products and services.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Absentee Allowed
Territory Type
Limited
Staff Count
2
Territory Size Requirements
Floorcoverings International territories, known as Designated Market Areas (DMAs), are defined by one or more contiguous postal codes and typically encompass between 50,000 and 80,000 single-family dwellings.
Staffing Notes
Floorcoverings International franchisees are not required to personally supervise the business. However, if an owner chooses not to personally supervise, they must employ a manager responsible for direct, full-time supervision of the business. Both the owner (if operating) or the designated manager must actively promote the business. Any manager is required to successfully complete the FCI Academy training program and sign a Nondisclosure and Noncompetition Agreement. Franchisees are responsible for training their employees, ensuring they wear FCI-approved image apparel, and adhering to all applicable federal, state, and local labor laws. The initial investment estimates suggest that a franchisee may operate as an owner-operator or hire one additional employee, such as an office manager, for the business.