What can Floors To Go deduct from the CashBack funds before distributing them to the franchisee?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
When you purchase such selected items you will be credited with a cash rebate based upon a percentage of the purchase price of the selected items purchased. These percentages range up to 8% of the purchase price of the selected items. Such cash rebates will be paid to FTG on your behalf when you earn such CashBack incentives. FTG will hold such funds, without liability for interest, and after verification of amounts received, and after setting off any amounts that you owe to FTG, will distribute such funds to you annually or semi-annually.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, franchisees may be eligible for the FTG CashBack Program, where manufacturers offer incentives for purchasing selected floor and window treatment products. These incentives can be up to 8% of the purchase price. Floors To Go receives these cash rebates on behalf of the franchisee.
Before distributing the CashBack funds to the franchisee, Floors To Go will verify the amounts received. More importantly, Floors To Go can offset the CashBack funds by deducting any amounts that the franchisee owes to Floors To Go. After these deductions, Floors To Go will distribute the remaining funds to the franchisee annually or semi-annually.
This arrangement means that while franchisees can benefit from the CashBack program, the actual amount they receive may be reduced if they have outstanding debts to Floors To Go. It is important for prospective franchisees to understand the terms of the CashBack program and how their financial standing with Floors To Go could impact their CashBack distributions.