Questions to ask a flooring franchisor before you sign

Most lists of questions to ask a franchisor, including the ACCC's thorough one, are written for any kind of franchise. But a flooring showroom has its own moving parts: a territory that decides whose homes you can quote, a range built on supplier deals, and installers working in customers' homes.

Here are the flooring-specific ones, with why each group matters and how we answer it at National Floors. Ask every franchisor, including us.

The short version. Ask how the territory is drawn, who keeps the supplier rebates and who pays when an install needs a callback. Then check every answer in the disclosure document, with current and former franchisees, and with a franchise lawyer and accountant before you sign.

This is general information, not legal or financial advice.

What should you ask a flooring franchisor?

A one-page due diligence checklist:

Topic	Ask	Where to check
Territory	Is it exclusive, and who gets online enquiries from it?	Disclosure document and agreement
Range	Which suppliers must I use, and who keeps the rebates?	Disclosure document
Installers	Who fixes a failed install, and who pays?	Current franchisees
Training	How long is it, and what support follows?	Current franchisees
Marketing	What did the national fund spend last year?	The latest fund statement
Systems	What's included, and what does it cost monthly?	Disclosure document and a demo
Fees	What's in the investment, and what isn't?	Disclosure document and your accountant
Exit	What happens to my stock and samples at the end?	Disclosure document and your lawyer

Is the territory exclusive, and how is it drawn?

In flooring, the job happens in the customer's home, so your territory decides where you can measure, quote and install.

Is it exclusive, and is it drawn by drive time, postcodes or a map?
Is the boundary in the franchise agreement, and what happens with customers at the edges?
Who gets online enquiries from my area?
Has a franchise traded here before, and why did it stop?

The disclosure document must cover exclusivity, online sales and outside competition (exclusivity won't stop an independent store opening nearby), and you must be told about any of their franchises there in the past 10 years.

How National Floors answers this. An exclusive territory of roughly a 60-minute drive, protected in your franchise agreement, which sets the exact boundary. Our disclosure document covers online sales; ask about the edges on your discovery call. See the open territories, from Geelong to Wodonga.

Which ranges and suppliers come with a flooring franchise?

Your range and buying terms decide what customers can choose and how sharply you can quote.

Which categories will I sell (hybrid, laminate, timber, carpet, tiles), and which ranges are exclusive?
Must I use set suppliers, how is my buying price set, and do you receive rebates?
Is stock drop-shipped to the customer's site, and how much must I hold?
Who pays for new samples and displays when ranges change?

The disclosure document must set out supply restrictions, required stock levels and supplier rebates. Franchisors don't have to share rebates, so ask.

How National Floors answers this. We work with 20+ suppliers, including Godfrey Hirst, Preference, Karndean, Tarkett and Quest, with exclusive ranges and national pricing, drop-shipped to site. Opening stock is part of the investment, and supply arrangements are in our disclosure document.

Who installs the floors, and who handles callbacks?

Customers judge a showroom by the finished floor, not the sample board, so find out who does the work and who stands behind it.

Who installs: my staff, contractors I engage or installers you arrange?
How are installers found and checked, and what insurance must they hold?
Who pays if a measure is wrong or the subfloor needs extra work?
How are warranty claims and callbacks handled, and who pays to fix a job?

Whoever installs, the Australian Consumer Law applies. Floors must be of acceptable quality, match the sample and be fit for any purpose the customer made known, and installation must be done with due care and skill. A business can't sidestep these consumer guarantees, and a warranty is an extra promise on top of them.

How National Floors answers this. Our CRM and job management system keeps every customer, quote and install in one place, and back office support covers job dispatch for a small fee. Ask us how installers are engaged and callbacks handled on your discovery call.

How much training and support will you get?

Training has a lot to cover quickly: product, measuring, quoting and selling. Support after opening matters as much.

How long is training, and is it on a trading showroom floor?
Does it cover measuring and quoting, and can my staff train too?
What support continues after opening?

How National Floors answers this. Three months of training on the floor of our trading showrooms, covering product, sales, operations and the money side, plus 10+ hours of video training and 100+ pages of written procedures you keep. After opening, there's coaching with KPI dashboards, quarterly reviews and peer groups. 70% of our successful managers came from other industries. See how support works.

What does the marketing levy pay for?

A showroom needs a steady stream of people booking measures, so find out what the levy buys.

What does the national fund pay for, and how much reaches my territory?
Can I see the latest annual marketing fund statement?
What must I spend locally, and who follows up enquiries from my area?

The Code requires that statement every year, you must get the latest one before you sign, and the disclosure document must say whether any of the fund has to be spent on your business. Our Franchising Code guide covers the rest.

How National Floors answers this. The national marketing levy is 2% of gross sales, and the network spends $500K a year on national marketing. Local marketing is $1,500 or 2% of sales, whichever is greater. Launch marketing is part of the investment, with automatic follow-ups for your territory. How the fund is reported is in our disclosure document.

Which systems come with the franchise, and do they cost extra?

A flooring job runs from measure to quote, order and install, and good systems keep each step visible.

Which point-of-sale, CRM and job management systems will I use?
Is there an app to measure and quote on site?
What do they cost each month, and is that in the royalty?

How National Floors answers this. Point of sale, CRM and job management, a field app for measuring and quoting on site, and live dashboards: the same systems our own showrooms use. Ongoing costs are in our disclosure document. See the systems.

What will it cost, and what do the fees pay for?

Put every franchisor's numbers on the same basis to compare like with like.

What does the investment include, and what's outside it (rent, wages, working capital)?
What are the ongoing fees a percentage of, and will I fund a refit during the term?
What finance is available, and can I see the numbers for my area?

How National Floors answers this. From $395,000 + GST, covering the showroom fit-out, opening stock, three months of training and launch marketing. Then a 5% royalty and a 2% national marketing levy, both on gross sales, plus local marketing of $1,500 or 2% of sales, whichever is greater. Finance is available to approved applicants through lenders who know our model, and at the numbers and territory step we share a profit and loss model and data for your area. Our guide to what a flooring franchise costs covers the rest.

Which documents should you read, and who should you talk to?

The ACCC suggests getting answers in writing and testing them with people who've lived them.

The disclosure document covers the territory, supply, the end of the term and contacts for current and recent former franchisees. It now also holds what the old key facts sheet covered.
The franchise agreement is what binds you, so check it matches what you were told.
Current and former franchisees. The ACCC suggests speaking to at least five of each, and you don't need the franchisor's permission. Ask how the business has gone for them and how callbacks get resolved. A young network may have fewer, so ask how else to test the model.
Trading showrooms. Watch how walk-ins are greeted and measures booked.
A franchise lawyer and accountant. The franchisor can't sign until it has statements that you've had independent legal, business and accounting advice, or chosen not to.

How National Floors answers this. You'll receive our Disclosure Document and franchise agreement before you sign, and a 14-day cooling-off period applies after you do. Due diligence includes a visit to our stores and a meeting with the leadership team. Showrooms trade in Dandenong, Werribee, Thomastown and Warragul, our newest, which is a franchise. Our guide to how long it takes to open a flooring showroom walks through every step.

What happens at the end of the franchise term?

A showroom comes with a lease, a fit-out and a wall of samples: know how you'd get out before you get in.

How long is the term, is there an option to renew, and does it line up with the lease?
What happens to my stock, samples and displays at the end? Will the franchisor buy them?
Can I sell the business, and is there a restraint of trade?

The disclosure document must cover the term, renewal, unsold stock and equipment, selling at the end and any restraint of trade. A franchisor can't unreasonably refuse a transfer: see buying an existing flooring business for the buyer's side.

How National Floors answers this. They're in our disclosure document and franchise agreement; ask us about them on your discovery call.

Questions

What should I ask a flooring franchisor first?

Start with the territory, what the investment includes and who installs the floors, because those answers shape everything else. You can check whether your area is open.

Can I talk to a franchisor's current and former franchisees?

Yes. The disclosure document must list contact details for current franchisees and those who left in the last three financial years, unless a former franchisee opted out. You don't need the franchisor's permission to call them.

Do franchisors still give you a key facts sheet?

No. The Code that replaced the old one in 2025 dropped it and moved its information into the disclosure document.