About Tile Liquidators Franchise
Tile Liquidators is a specialty retail franchise offering discounted tile, stone, and flooring products to homeowners, contractors, and designers.
The brand, backed by Tile Liquidators, LLC, has been franchising since 2019 and operates on a model that delivers high quality flooring materials at below market prices by purchasing closeouts, overstocks, and direct imports.
Each showroom is designed for easy browsing with a wide selection of porcelain, ceramic, natural stone, and glass tiles.
Tile Liquidators Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000.00 | One-time payment upon signing |
| Royalty Fee | $1,800 per month of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of Gross Revenues (recommended) | National brand fund |
| Total Investment Range | $62,200 – $108,300 | Includes build-out, inventory, working capital |
The investment range of $62K–$108K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty ($1,800 per month) and marketing fee (3% of Gross Revenues (recommended)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee (Note A) | $35,000 | $35,000 |
| Travel & Living Expenses While Attending Initial Training | $300 | $1,500 |
| Real Estate Improvements (Note B) | $500 | $4,500 |
| Rent & Security Deposit (3 Months) | $6,000 | $10,000 |
| Leasehold Improvements (Note C) | $0 | $2,000 |
| Equipment (Note D) | $1,500 | $6,500 |
| Furniture, Office Equipment & Software | $500 | $2,500 |
| Signs | $500 | $2,600 |
| Licenses | $200 | $500 |
| Grand Opening (Note E) | $1,000 | $3,000 |
| Marketing (3 months) (Note E) | $500 | $5,000 |
| Insurance (Note F) | $1,200 | $2,200 |
| Legal and Accounting Fees (Note H) | $2,000 | $4,000 |
| Opening Inventory of Supplies | $9,000 | $16,000 |
| Additional Funds (3 months) (Note I) | $4,000 | $13,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $500 |
| Renewal Fee | 50% of the then-current Initial Fee |
| Interest on past due amounts | 1.5% per month |
| Profits on supplies or equipment | Variable |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 20 to 30 hours |
| Classroom Training | 30 hours |
| On-the-Job Training | 21 hours |
| Training Location | Sacramento, CA |
| Additional Training | Training will be conducted by Doug Disney, Matthew Murphy and various vendors. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | five (5) mile radius |
| Description | A geographic territory which will be a five (5) mile radius from Your approved location. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | another term |
| Renewal Fee | 50% of the then-current initial fee |
| Renewal Conditions | Franchisees may be asked to sign a new contract with materially different terms than their original contract. You must be in good standing with Us, sign new agreements, update to current showroom standards, give 12 months notice and pay a fee of not more than 1/2 of the then-current initial Fee. |
| Transfer Fee | $2,500 |
| Transfer Conditions | New Franchisee signs the then-current form of Agreement (except preserving Your financial plans for balance of Your term); new Franchisee qualifies; new Franchisee successfully completes initial training program; new Franchisee obtains rights to Your Premises lease, if applicable; and We receive 30 day right of first refusal. The fee to transfer to an entity with identical ownership is $500. |
| Termination for Cause | Failure to pay Us or Our affiliate or another Tile Liquidators franchisee; unauthorized assignment; abandonment; insolvency; failure to pay taxes; sublicensing of Marks; improper ownership; violation of law or rule; felony conviction; failure to operate properly; unethical or dishonest business dealings; failure to maintain insurance; failure to timely deliver estoppel certificate; or termination of any other agreement. Cure period of 72 hours or 30 days depending on the breach. |
| Non-Compete Period | 24 months |
| Non-Compete Details | You must not compete with Us within 24 miles of the boundaries of Your Territory, solicit or divert any of Our customers or vendors or customers or vendors of any Our franchisees, disclose any trade secrets, or solicit or hire any of Our employees, former employees or franchisees. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must either devote Your full time and effort to managing and operating the Licensed Business or delegate its management or operation to a responsible person. If You delegate management and operation to a manager, the manager must first successfully complete Our initial training program within sixty days after assuming the role of manager. If You are a corporation or other entity, each owner must personally guaranty the Agreement and the entity must designate a competent manager. We do not require the designated manager to be an equity owner of the franchised business. |
| Required Suppliers | You must purchase from Us or a supplier we approve, equipment and inventory necessary to start or operate your Tile Liquidators. As to other equipment, supplies and inventory, You may purchase them from the vendor(s) of Your choice or the item(s) must meet Our specifications. |
| Supply Restrictions | You may not change the System or any part of the System at any time, and as changed it will remain the System. We own any improvements or changes in the System whether We, You or other franchisees develop them and have the right to adopt and perfect such improvements or changes without compensating You. If we modify the System, You must at Your own expense, adopt and use the modification(s) if they were part of the System at the time You signed the Agreement. There are no restrictions on Our right to modify the types of goods and services You will offer except that We will remain primarily a seller of residential and commercial Ceramic, Porcelain, Natural Stone, Granite Countertops, Laminate/LVT, Hardwood Flooring, tools, setting materials and related products. |
| Franchisor Revenue from Suppliers | We estimate that Your purchases of goods and services from approved sources will represent approximately 90 to 100% of Your overall purchases in operating the Licensed Business. We estimate that Your purchases of goods and services in connection with establishing Your Licensed Business and approximately 90 to 100% of Your total purchases in connection with operating Your Licensed Business. |
Tile Liquidators Franchise Earnings — Item 19
Tile Liquidators does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Tile Liquidators Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Tile Liquidators System Growth
Tile Liquidators currently operates 7 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 1 | 2 |
| 2020 | 3 | 0 | 5 |
| 2021 | 2 | 0 | 7 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 22 states: CA, CT, DE, FL, HI, IL, IN, IA, MD, MI, MN, NE, NY, ND, OR, RI, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Propp Christensen Caniglia LLP for year ending December 31.
Tile Liquidators Franchise — FAQ
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