Does Floors To Go arrange financing from other sources?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
FTG does not offer direct or indirect financing. FTG does not intend in the future to sell, assign or discount to a third party any note, contract or other obligation of yours which is owed to FTG. FTG does not arrange financing from other sources, and accordingly, does not receive payments for placing financing.
FTG does not guarantee your note, lease or obligation.
Source: Item 10 — FINANCING (FDD page 22)
What This Means (2025 FDD)
According to the 2025 Floors To Go FDD, Floors To Go does not arrange financing from other sources for prospective franchisees. The FDD states explicitly that Floors To Go does not receive payments for placing financing.
Floors To Go offers limited direct financing in the form of deferred payment of the Initial Membership Fee. The amount of the Initial Membership Fee which is deferred is $9,000. This deferred payment is tied to the FTG CashBack Program, where Floors To Go retains proceeds allocable to the franchisee from the program up to $9,000 or for a five-year period, whichever comes first. If the CashBack Participation does not generate proceeds to Floors To Go of $9,000, whatever lesser amount of proceeds is collected by FTG over the five-year participation period on your behalf will be deemed payment in full for your Initial Membership Fee.
If a franchisee's Membership Agreement with Floors To Go is terminated before the initial five-year term is complete, the remaining balance of the Initial Membership Fee becomes immediately due in cash. Floors To Go does not require any security interest or personal guaranty from anyone other than the member in connection with this deferred payment of the Initial Membership Fee. Floors To Go also does not guarantee any note, lease, or obligation of the franchisee.