What is the duration of the CashBack Participation period for Floors To Go?
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 imme
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Floors To Go's 2025 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 FTG to retain proceeds allocable to the franchisee for up to $9,000 or for a five-year period, whichever comes first. This is referred to as the "CashBack Participation." If the CashBack Participation does not generate $9,000 in proceeds for FTG within the five-year period, the lesser amount collected by FTG during that time 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 franchisee must immediately pay the remaining balance of the initial membership fee in cash. This means that while the CashBack program allows franchisees to pay off the initial fee over time, early termination of the agreement requires immediate payment of any outstanding balance.