Floor Coverings International Franchise Cost, Revenue & Review 2026
- Investment
- $201K – $281K
- Disclosed sales
- $1.2M
- gross sales, not profit
- SBA charge-off
- 23.3%
- on 149 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Floor Coverings International franchise requires a total initial investment of $201K – $281K, including a $55K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average revenue per franchisee was $1.2M. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages[2]. SBA 7(a) loans show a 23.3% charge-off rate across 149 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $201K – $281K
- 77th pct Home Services
- Avg gross sales
- $1.2M
- Per franchisee, not per outletOutlet subset
- Royalty
- 5.0%
- 8th pct Home Services
- Units
- 309
- 81st pct Home Services
- SBA charge-off
- 23.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $201K – $281K including a $55K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage revenue per franchisee of $1.2M/year (median $1.0M) (reported for a subset of outlets rather than the whole system). Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 23.3% across 149 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +21 franchised outlets in the latest year (61 opened, 25 closed) (Item 20).
- GROWTHSystem growing at 22.6% CAGR over 3 years with 309 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Floorcoverings International, Ltd.
- Parent company
- FS Brands, Inc.
- FDD Item 1, page 6 of the 2026 FDD
- Ultimate parent
- FirstService Corporation
- FDD Item 1, page 6 of the 2026 FDD
- CEO title
- President, CEO and Director
- Thomas W. Wood
- Incorporated in
- Georgia
- HQ
- 5390 Triangle Parkway, Suite 125, Norcross, Georgia 30092
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $888.6M
- vs $850.4M prior year
Same owner · FDD Item 1, page 6
4 other brands on this site name FirstService Corporation as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
Mobile retail floor covering (soft and hard flooring) and window treatment franchise; franchisees operate from a studio (office/warehouse), bring product samples to customers' homes/businesses, and coordinate ordering and installation via designated mills/suppliers and qualified installers.
- CEO
- Thomas W. Wood
- Headquarters
- Georgia
- Founded
- 1998
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 43% above the typical home services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Working capital (3–6 mo) | $35K | $65K |
| Equipment, build-out, other | $111K | $161K |
| Total initial investment | $201K | $281K |
Source: Floor Coverings International 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $201K – $281K
- Bottom third — review vs category
- Liquid capital req'd
- $35K – $65K
- Bottom third — review vs category
- Franchise fee
- $55K
- Middle of category vs category
- Royalty
- 5.0%
- Set by a formula · typical 6–8%
- Ad fund
- 3.0%currently 2%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Transfer fee | $15K |
| Renewal fee | $10K |
What do units actually make?
Average unit sales run 107% above the home services norm.
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Reported for a subset of outlets rather than the whole system
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Floor Coverings International until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$291K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Floor Coverings International unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $1.2M
- Per franchisee, per year — not per outlet
- Median gross sales
- $1.0M
- Per franchisee, not per outlet
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales cohorts
- Sample size
- 159 franchisees
- vs category median 32 · large
- Range (low → high)
- $254K→$9.8MCited, not corroborated — printed on page 49 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $513K→$2.3M
- Bottom 25% → top 25%, per franchisee
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 319 Home Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
The average franchisee generates $1.2M/year in gross sales. Median is $1.0M — top performers pull the average up, so a typical unit earns less. Reported for a subset of outlets rather than the whole system.
Fee burden
5.0% royalty + 3.0% ad fund — lower than the category average.
Operator retention
System expanding at 22.6% CAGR over 3 years across 309 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services medians
How Floor Coverings International Compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 309
- Opened
- 61
- Last reporting year
- Closed
- 25
- Terminated
- 15
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 12.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +22.6%
- Net unit change over 3 years
- 3-yr CAGR
- +22.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 15
- Not renewed
- 0
- Transferred
- 17
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 149
- Loan volume
- $26.6M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 23.3%
- on 149 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 76.7%
- 5-yr charge-off
- 12.5%
- Loans approved 2021+
- Active lenders
- 35
- Defaults
- 10
- Typical loan rate
- 8.7%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 2383
- Jobs supported
- 736
- 2.8 per loan
- Lender concentration
- 36%
- top lender's share
Borrower mix: 94% went to startups / new businesses, 6% to established operators
Vintage analysis
Floor Coverings International charge-off rate by loan vintage
Top lenders financing Floor Coverings International franchisees
Showing 3 of 35 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Floor Coverings International from SBA 7(a) FOIA data.
- Principal loss rate
- 5.0%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 8.65%
- Avg chargeoff amount
- $134K
- Lender concentration
- 36.2%
- Job velocity
- 2.8 per $100K
- Jobs supported
- 736
Top SBA lendersTop lender holds 36% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 54 | N/A | N/A | |
| 2 | 33 | N/A | N/A | |
| 3 | 8 | N/A | N/A | |
| 4 | 7 | N/A | N/A | |
| 5 | 7 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 24 | 5 | 41.7% |
| FLFlorida | 12 | 0 | 0.0% |
| GAGeorgia | 12 | 1 | 25.0% |
| OHOhio | 10 | 0 | 0.0% |
| CACalifornia | 9 | 0 | 0.0% |
| ILIllinois | 9 | 1 | 20.0% |
| MIMichigan | 8 | 1 | 50.0% |
| AZArizona | 7 | 0 | 0.0% |
| MAMassachusetts | 7 | 0 | -- |
| VAVirginia | 7 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 23.3% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 23.3% — 45% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
FCI is plaintiff in 6 pending federal court actions (N.D. Georgia) against former franchisees for breach of post-term restrictive covenants, trademark infringement, misappropriation of trade secrets, and/or collection of monies owed; 2 of these (Justice, Bae) involve franchisee counterclaims alleging breach of contract/fraud. No bankruptcy disclosed. No litigation against FCI by third parties or regulators disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | 50,000-80,000 single family dwellings per DMA |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 17 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Arbitration location | Norcross, Georgia (mediation under AAA Commercial Mediation Rules; litigation in Georgia state or federal court) |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 6 |
View Item 3 litigation summary
FCI is plaintiff in 6 pending federal court actions (N.D. Georgia) against former franchisees for breach of post-term restrictive covenants, trademark infringement, misappropriation of trade secrets, and/or collection of monies owed; 2 of these (Justice, Bae) involve franchisee counterclaims alleging breach of contract/fraud. No bankruptcy disclosed. No litigation against FCI by third parties or regulators disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 152 hrs
- On-the-job training
- 62 hrs
- Training location
- FCI headquarters in suburban Atlanta, Georgia (or virtual)
- Ongoing training
- Required
- Franchisor financing
- Offered
- Item 10
- POS system
- InspireNet / InspireNet Mobile
- Operating tech stack
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Floor Coverings International franchise?
The total investment to open a Floor Coverings International franchise ranges from $201K – $281K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Floor Coverings International franchise owners earn?
According to Item 19 of the Floor Coverings International FDD, the average gross sales per unit is $1.2M. The median is $1.0M. Important context: Averaged per franchisee, not per outlet - not comparable with per-outlet figures; Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Floor Coverings International?
Floor Coverings International is franchised by Floorcoverings International, Ltd.. Its parent company is FS Brands, Inc.. The ultimate parent named in the FDD is FirstService Corporation. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Floor Coverings International FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Floor Coverings International FDD and qualifies whose outlets they describe.
What is Floor Coverings International's franchise failure rate?
Based on SBA 7(a) loan data, Floor Coverings International has a charge-off rate of 23.3% across 149 loans, meaning 23.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Floor Coverings International franchise locations are there?
As of their most recent FDD filing, Floor Coverings International has 309 total units in the United States, including 309 franchised units and 0 company-owned units. 61 new units were opened in the latest reporting year.
Is Floor Coverings International a good franchise to buy?
FranchiseVerdict rates Floor Coverings International as a B-grade franchise with a verdict score of 56 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.