To whom is the initial membership fee paid 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.
FTG charges no interest on such deferred payments.
See Item 5 for an explanation of the FTG CashBack Program which is based on a percentage of selected carpets and floor coverings purchased by you through the FTG System.
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 Floors To Go's 2025 Franchise Disclosure Document, the initial membership fee is paid to FTG. The total initial membership fee is $10,000. A franchisee pays $1,000 upfront at signing. The remaining $9,000 is paid through participation in the FTG CashBack Program.
The FTG CashBack Program is based on a percentage of selected carpets and floor coverings purchased by the franchisee through the FTG System. The $9,000 portion of the initial membership fee is collected from the franchisee's CashBack Participation over five years. FTG does not charge interest on these deferred payments.
It's important to note that the initial membership fee is non-refundable. However, the fee will be waived and refunded if the franchisee attains $350,000 of first quality, running line purchases through the FTG System within the 12-month period beginning 90 days after the membership begins. This excludes promotional products, special purchases, and SP's. If this target is met, FTG will refund all payments made for the initial membership fee on or after the fifteenth month after the membership begins.