What is the duration of the Floors To Go CashBack Participation period?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
IAL FEES**
A. Single Showroom Membership
As a new member, you will be charged an Initial Membership Fee of $10,000. This fee is payable as follows: (a) $1,000 is paid at the time your Membership Agreement is signed; and (b) the remaining $9,000 is paid through the FTG CashBack Program (described below) whereby you will grant FTG the right to retain all proceeds allocable to you from the FTG CashBack Program up to the $9,000 amount or for a five-year time period, whichever occurs first (referred to hereafter as the "CashBack Participation"). If the CashBack Participation does not generate proceeds to FTG 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 your Membership Agreement is terminated prior to completion of the initial five-year term, the remaining balance of the Initial Membership Fee shall be due and payable by you to us in cash immediately upon the date of any such termination.
The FTG CashBack Program consists of various floor covering and window treatment manufacturers offering CashBack incentives for the purchase of selected floor covering and window treatment products. When you purchase such selected carpets and/or floor coverings you will be credited with a cash rebate based upon a percentage of the selected carpets and/or floor coverings purchased. These percentages range up to 8% of the purchase price of 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. You are eligible to participate in the FTG CashBack Program and will be notified on a regular basis of qu
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the CashBack Participation period lasts for five years. As a new Floors To Go member, $1,000 of the $10,000 Initial Membership Fee is due upon signing the Membership Agreement. The remaining $9,000 is paid through the FTG CashBack Program.
The Floors To Go CashBack Program allows Floors To Go to retain proceeds allocable to the franchisee from the CashBack Program up to $9,000 or for the five-year period, whichever comes first. If the CashBack Participation does not generate $9,000 in proceeds for Floors To Go during the five-year period, the lesser amount collected by Floors To Go over the participation period will be considered full payment of the Initial Membership Fee.
However, if the Floors To Go Membership Agreement is terminated before the initial five-year term is complete, the remaining balance of the Initial Membership Fee is immediately due in cash to Floors To Go. This means that franchisees who terminate early may lose the benefit of the CashBack program and have to pay the remaining balance out of pocket.
The FTG CashBack Program involves floor covering and window treatment manufacturers offering incentives for purchasing selected products. Franchisees receive a cash rebate based on a percentage (up to 8%) of the purchase price of selected items. These rebates are paid to Floors To Go, held without interest, and distributed to the franchisee annually or semi-annually after verification and any offsets for amounts owed to Floors To Go.