Does Floors To Go offer any financing arrangements, either directly or indirectly?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
Schedule "A" | Item 12 |
ITEM 10. FINANCING
Neither FTG nor any of its agents or affiliates offers any financing arrangements, directly or indirectly, to you except that FTG permits deferred payment of the Initial Membership Fee which is paid over a period of time in conjunction with the CashBack Participation program (see Section 7.2 of the Membership Agreement). No interest will be charged to you and no separate promissory note will be executed by you. The amount of the Initial Membership Fee which is deferred is $9,000. 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. 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 and FTG may assess attorneys' fees and other costs associated with the collection of such amount. FTG does not require any security interest or personal guaranty from anyone other than the member in connection with this deferred payment of the Initial Membership Fee.
FTG does not offer direct or indirect financing. FTG does not intend in the future to sell, assign or discount to a third party any note, contract or other obligation of yours which is owed to FTG. FTG does not arrange financing from other sources, and accordingly, does not receive paymen
Source: Item 10 — FINANCING (FDD page 22)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, Floors To Go does not offer direct or indirect financing to franchisees. However, Floors To Go does allow for a deferred payment plan for the Initial Membership Fee.
The deferred payment plan allows the franchisee to pay the $9,000 Initial Membership Fee over time through the CashBack Participation program. Floors To Go will retain the franchisee's proceeds from the FTG CashBack Program until $9,000 is collected, or for a maximum of five years. If the CashBack Participation does not generate $9,000 in proceeds within five years, whatever amount is collected will be considered full payment. No interest is charged, and no promissory note is required.
If the Membership Agreement is terminated before the initial five-year term is complete, the remaining balance of the Initial Membership Fee becomes immediately due in cash. Floors To Go may also assess attorneys' fees and other costs associated with collecting the outstanding amount. Floors To Go does not require any security interest or personal guarantee other than from the member in connection with the deferred payment of the Initial Membership Fee.
Floors To Go also states that it does not intend to sell, assign, or discount any franchisee obligations to a third party. Additionally, Floors To Go does not arrange financing from other sources and does not receive payments for placing financing, nor does it guarantee any franchisee's note, lease, or obligation.