When is the initial membership fee due for a Floors To Go franchise?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Membership Fee(1) | $10,000 | $1,000 upfront fee; $9,000 from CashBack Participation(2) | $1,000 at signing | FTG |
(1) The Initial Membership Fee is non-refundable except that, if you attain $350,000 of first quality, running line purchases, exclusive of promotional products, special purchases and SP's, through the FTG System within the 12-month period beginning 90 days after your membership begins, your Initial Membership Fee will be waived,
and all payments you have made for that fee will be refunded to you by FTG on or after the fifteenth month after the date your membership begins.
(2) The Initial Membership Fee is paid as follows: (a) $1,000 is due at signing; and (b) $9,000 is paid through the participation in the FTG CashBack Program.
Nine Thousand Dollars ($9,000) of your Initial Membership Fee will be collected from your CashBack Participation over five years.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 14–17)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the initial membership fee is $10,000. The payment schedule is broken down into two parts. First, $1,000 is due at the signing of the franchise agreement. The remaining $9,000 is paid through participation in the FTG CashBack Program.
The FTG CashBack Program allows franchisees to pay a portion of the initial membership fee over time, specifically over five years, based on a percentage of selected carpets and floor coverings purchased through the Floors To Go system. This arrangement can ease the initial financial burden on new franchisees by spreading out the payments.
However, the FDD also notes a potential waiver of the initial membership fee. If a franchisee achieves $350,000 in first quality, running line purchases (excluding promotional products, special purchases, and SP's) through the FTG System within the first 12 months, starting 90 days after membership begins, the entire initial membership fee will be refunded. This provides a significant incentive for franchisees to quickly ramp up their sales volume through the Floors To Go system.
Prospective franchisees should carefully consider the terms of the FTG CashBack Program and the conditions for the initial membership fee waiver to understand their payment obligations and potential opportunities for reimbursement.