Multi-Unit Franchise Experts

Franchise Evaluator™: Floor Coverings International®

Floor Coverings International® has successfully transformed an outdated business model into a cutting-edge approach. The franchise locations operated by Floor Coverings International® have embraced mobility, departing from the conventional fixed showroom setup. Instead, they have adopted a dynamic mobile showroom model, ensuring that the options for flooring are brought directly to the customers. This innovative strategy prioritizes customer convenience, allowing individuals to select their desired flooring solutions from the comfort of their homes. Floor Coverings International® has redefined the $512.01 billion flooring industry by placing the customer experience at the forefront of its operations.

Floor Coverings International®
Franchise at a Glance

Corporate Address

Floor Coverings International® 5390 Triangle Parkway, Suite 125 Norcross GA 30092

Year Founded: 1988
Year Started Franchising: 1989
Business Description:

Floor Coverings International® is one of the highest-rated flooring companies in North America and is committed to delivering an unparalleled in-home flooring experience. The Design Associates and flooring team at Floor Coverings International® are both devoted to achieving superior craftsmanship, ensuring that the floors in customers’ homes are functional and aesthetically pleasing.

One distinguishing aspect of Floor Coverings International® lies in its genuine pride in its work for clients. From the initial interaction, Design Associates establish a level of trust that elevates the value of the project. Floor Coverings International® deeply respects the consumer’s time, home, and every aspect of the service they provide.

MARKET Factors

1

What population does the brand serve? Is the market broad, niche, or somewhere in-between?

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Market Size

The market size of the U.S. residential remodeling sector was estimated at  $512.01 billion in 2022, with a projected compound annual growth rate (CAGR) of 4.4% anticipated from 2023 to 2030, according to Grand View Research. Key drivers of this market include the rising disposable income of homeowners and the escalating demand for aesthetically pleasing housing components, coupled with the increasing adoption of advanced home automation systems.

8

We categorize the market size as a large market.

Scale

Small to Large Market Size
2

Is the overall industry growing, that is creating new customers who have never used these services before, or mature where most population segments are already using these types of products and services?

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Industry Trend

With the rise in home renovation projects, homeowners are increasingly directing their attention toward the initial enhancement of floors. Anticipated industry trends suggest a continued surge in home improvement expenditures in the coming years. This evolving landscape presents a substantial opportunity for owners of the renovation franchise. 

According to a survey administered by the National Association of the Remodeling Industry(NARI), flooring emerges as a prominent means to augment a home’s value. The survey reveals that the installation of new wood flooring has the potential to yield homeowners an impressive 106% return on their renovation investment through an increased home value. There has been a 27% increase in home renovation spending from the previous year.

Floor Coverings International® possesses a clearly defined market niche that experiences annual growth, and expansion is contingent upon the pace set by the franchisee.

9

We categorize the Industry Trend as high growth trend.

Scale

Low to High Growth Trend
3

What drives the purchase of the product or service? Is it a “need-to-buy” or a “want-to-buy”? How are customers drawn to your business?

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Product and Service Drivers

With decades of experience in the industry, Floor Coverings International® is well-versed in discerning successful practices from those that are not. The company is prepared to impart this extensive knowledge to its franchisees. Distinguishing itself from other franchisors, Floor Coverings International® provides an extended training and support program throughout the initial two years of the franchisee’s business operations. The dedicated team collaborates closely with franchisees to ensure they are on a steadfast path toward establishing a robust and thriving business.

Floor Coverings International® is modernizing the flooring industry; the company has introduced the innovative concept of a mobile showroom. Franchise owners under their banner operate company-branded vans stocked with an extensive array of over 3,000 flooring options, encompassing hardwood, carpet, luxury vinyl, laminate, natural stone and tile, specialty flooring, eco-flooring, and more. This unique approach allows customers to choose from a diverse range of flooring options, with the convenience of the company bringing the showroom experience directly to them.

7

We categorize the product and service drivers as mid to high drivers.

Scale

Low to High Drivers
4

Are competitors a major factor in operating your business? If so, is competition sparse or saturated? Will it matter to your business?

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Competitive Climate

Competing against the big box stores is approached with a distinctive strategy. Rather than direct competition, the focus lies on a specific market niche. The home improvement stores jointly account for only 7% of the extensive flooring market, which is predominantly composed of do-it-yourself enthusiasts. Floor Coverings International®’s targeted demographic for this alternative approach is the female homeowner who prefers to avoid or dislike shopping at large box stores, particularly for installation services. Floor Coverings International® addresses this preference by bringing its mobile flooring showroom directly to the customer’s home, offering a personalized and convenient shopping experience.

8

We categorize the competitive climate as low-mid competitive pressure.

Scale

Low to High Competition
5

Are the business’s products or services regulated, or do they require licensing? Will you or your employees require special licensing? If so, is the regulatory climate strict or lax? Will this affect recruiting employees?

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Regulatory Climate

Regulations for the flooring industry can vary depending on the country, state, or region. However, there are some common regulations and standards that may apply to the flooring industry in many places. It’s important for businesses in the flooring industry to be aware of and comply with these regulations to ensure the safety, quality, and environmental impact of their products and services. 

Manufacturers are currently discovering novel processes and sustainable products suitable for flooring, aligning well with eco-friendly practices. As these manufacturers continue to produce environmentally conscious floor coverings, individuals find it increasingly convenient to create a sustainable home. Floor Coverings International® maintains a direct partnership with these manufacturers, ensuring a direct access point to the latest environmentally-friendly flooring options.

9

We categorize the regulatory climate as low regulation.

Scale

Low to High Regulation

MODEL Factors

1

This is one of the most important factors of all. To understand it you have to look beyond what the business physically does, the services performed or products sold and ask how does the franchise make money? Where does the revenue come from? How is it generated? Are financial performance representations made? Coupled with External Factors 1, 2 and 5 – Market Size, Industry Trend and Competitive Climate and the next Internal Factor 2, Franchisee Role – the true nature of the franchise starts to take shape.

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Revenue Model

Greater profit margins play a crucial role in influencing the earnings of franchise owners. Floor Coverings International® maintains exceptional relationships with its suppliers, enabling franchisees to secure favorable rates on materials. The substantial buying power positions Floor Coverings International® among the top 10% of suppliers. Before presentation to customers, all products undergo testing, ensuring quality assurance and financial advantages for customers through our vendor relationships.

8

We categorize the Operational Model as Simple.

Scale

Simple to Complex Model
2

How developed are the systems on which you will rely to operate your business?

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Operational Systems

Floor Coverings International® operates with a proven business model that enables franchise owners to achieve substantial growth within their designated territories. The distinctive mobile showroom concept sets Floor Coverings International® apart in the booming flooring industry, as it brings flooring samples directly to customers’ homes. Franchise owners and their teams assume the role of consultants, providing high-quality products and exceptional customer service to cultivate trust with consumers.

Floor Coverings International® offers franchise training spanning two years. It blends classroom, online, Peer, and Momentum Groups for comprehensive success. Continuous improvement is a core philosophy, with ongoing support available year-round. The annual convention brings the Floor Coverings International® family together for successful recaps and future planning. 

9

We categorize the Operational Systems as Comprehensive.

Scale

Basic to Comprehensive
3

In this highly diffuse world, creating, managing and projecting a Brand is essential for the health and vitality of a franchise system. How well does the Franchisor manage this? How well positioned is the brand among competitors? Is it differentiated enough? How well would potential customers recognize the brand? How is it projected into new markets? What is your role and obligations in this process? How is the Brand’s digital footprint managed?

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Brand Management

A commitment to community service is a cornerstone of Floor Coverings International®’s identity. Emphasizing the significance of fostering relationships beyond customer interactions, CEO Tom Wood articulates the brand’s perspective, stating, “At Floor Coverings International®, the community doesn’t just mean the neighborhood you live in. It includes the areas in which you work, play, and encourage your family, friends, and neighbors to thrive.” 

The brand’s philanthropic efforts extend to notable charities such as St. Jude Children’s Research Hospital, with over $60,000 donated in the past year alone through a strategic partnership with a key supplier. A point of pride for the brand is not only their support for St. Jude but also their collaboration with various organizations championed by franchisees. These franchisees actively contribute to local charities, engaging in diverse initiatives, from serving meals in homeless shelters to participating in Habitat for Humanity.

10

We categorize the Brand Management as High Engagement.

Scale

Low to High Engagement
4

What role is the franchisee expected to play in starting, ramping and the ongoing operation of the business?

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Floor Coverings International® Franchisee Role

Floor Coverings International®’s ideal candidate is someone with a passion for leading teams and fostering success among their employees. This individual thrives on building a positive culture and embraces a winning mindset. Notably, 40% of Floor Coverings International®’s franchise owners are female, showcasing a commitment to diversity, and they share a genuine love for helping homeowners rediscover their affection for their homes.

In terms of responsibilities, franchisees engage in crucial networking activities, connecting with businesses involved in flooring-related projects, such as restoration companies, realtors, architects, remodelers, property managers, and multi-family unit owners. Franchisees will play a pivotal role in leading and nurturing their teams, ensuring the sales team is generating leads and meeting targets while overseeing project coordination to control costs. Managing business metrics, collaborating with Floor Coverings International® corporate to meet financial and time-based milestones, and optimizing marketing ROI and KPIs are integral aspects of their role.

9

We categorize the Franchisee Role as Business Manager.

Scale

Service Executor to Business Manager Role
5

What type of location, if any, is needed to deliver the product or service? If real estate is needed, are the requirements flexible or stringent? Is real estate essential to the product or brand experience or required for services to be performed onsite?

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Real Estate Needs

The franchisee is mandated to establish a studio (office/warehouse). In the capacity of the owner of Floor Coverings International®, they will operate from a design-consultation studio. This studio will serve as the hub from which the franchisee and their team will provide services to the local market.

10

We categorize the regulatory climate as basic need.

Scale

Basic to Essential Needs

ORGANIZATION Factors

1

How experienced is the franchisor at being a franchisor?

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Franchising Experience

Floor Coverings International® is led by Tom Wood, who assumed the role of President and CEO in 2005. With a robust background in franchise development and operational strategy, Wood brings valuable insights garnered during his three-year tenure as Vice President at the parent company, FirstService Brands (FSB). 

His extensive experience within the FSB umbrella, dating back to 1985, includes notable roles such as franchisee and executive at College Pro Painters, Vice President and founding team member at CertaPro Painters, and President of The Franchise Development Center. Tom has also contributed to the growth and development of other sister companies, such as California Closets and Paul Davis Restoration. His wealth of experience positions him as a seasoned leader guiding the Floor Coverings International® franchise toward continued success and innovation in the competitive market.

10

We categorize the Franchising Experience as Extensive.

Scale

Limited to Extensive
2

What is the tenure, background, and commitment of the franchise’s leadership?

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Franchise Leadership

Floor Coverings International® is led by an accomplished leadership team, with Chad Schloerke as the Chief Operating Officer, Ben Pace as the Chief Financial Officer, Ryan Aschauer as the Chief Information Officer, Stacey Vogler as the Chief Marketing Officer, and Alan Dickherber as the Senior Vice President of Operations and head of the New Franchise Development Program. 

Schloerke’s decade-long experience, including roles at College Pro Painters, contributed to Floor Coverings International®’s impressive 200% growth.  Pace, joining in 2020, steered the company through financial challenges, leading to substantial growth. Aschauer, instrumental since 2004, focuses on cutting-edge technology, while Vogler, with over 20 years of marketing experience, emphasizes customer brand experience. Dickherber’s diverse background, from Mechanical Engineering to owning a CertaPro Painters franchise, positions him as a valuable guide for new business owners. Together, this dynamic team ensures Floor Coverings International®’s continued success and innovation in the flooring industry.

10

We categorize the Franchising Leaders as Highly Experienced.

Scale

Limited to Highly Experienced
3

How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.

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Franchisee Engagement

Floor Coverings International® looks for prospective franchisees in pursuit of a career replacement who seek full-time endeavors and possess a proven track record of leadership. These individuals are keen on establishing a scalable business and demonstrate proficiency in both B2B and B2C sales. They are capable of leading a sales team and aspire to build something impactful in their community. A willingness to thrive in a sales-oriented business, with a particular emphasis on empowerment and coaching, is a key attribute. Real estate knowledge is a plus. Embracing a positive mindset of “How Can I vs. I Can’t” is essential, and a spirit of fun contributes to the overall dynamic. Notably, the franchise celebrates diversity, with a notable 38% of owners being female.

Franchisees also benefit from peer meetings, known as “momentum groups,” facilitating the exchange of successful sales techniques and business strategies among franchisees of diverse experience levels.

9

We categorize the Franchisee Engagement as Highly Engaged.

Scale

Low to Highly Engaged
4

In what kind of financial shape is the franchisor?

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Financial Health

The financial health of Floor Coverings International® is robust, as indicated by the diverse performance metrics in their 2023 Franchise Disclosure Document across reporting franchisee groups. The top 10% of franchisees, with an average revenue produced of $3,292,848 and a success rate of 45%, lead the way with substantial median figures exceeding industry averages. The top 25%, top 50%, and even the bottom 50% and 25% showcase consistent growth, with varying figures that highlight the company’s adaptability across diverse franchisee performances. Overall, the comprehensive data from all reporting franchisees, encompassing an average gross revenue produced of $1,111,515 and a gross margin of 45%, underscores the financial stability and effectiveness of Floor Coverings International® across different performance tiers, reflecting a healthy and thriving franchise network.

10

We categorize the Financial Health as Sound.

Scale

Weak to Sound Financial Health

Key Points

Investment Range
$151,400 – $220,100
Initial Franchise Fee
Single: $50,000
Financial Performance Representation

Yes

(Item 19)

Average Number of Employees
2-3
Royalty Fee
5%
Locations
230
Veteran Discount
Yes
Home Based
Yes
Visa Candidates
Yes

Total Franchise Evaluator Score

126
0 – 24

Missing fundamental, internal or external factors

25 – 49

More investigation is needed

50 – 74

Worth exploring further with caution

75 – 99

Add to consideration set

100 – 140

Sound opportunity and likely a great fit

Learn more about Floor Coverings International®

Meet with one of our experts for guidance and to answer any questions you have regarding Floor Coverings International®.