Is participation in the Floors To Go FTG CashBack Program optional or required?
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, participation in the FTG CashBack Program is required for new members as part of paying the Initial Membership Fee. Specifically, $1,000 of the $10,000 Initial Membership Fee is paid when the Membership Agreement is signed. The remaining $9,000 is paid through the FTG CashBack Program.
The FTG CashBack Program involves floor covering and window treatment manufacturers offering incentives for purchasing selected products. When a Floors To Go franchisee purchases these selected items, they receive a cash rebate of up to 8% of the purchase price. These rebates are paid to Floors To Go on the franchisee's behalf. Floors To Go holds these funds, without interest, and distributes them to the franchisee annually or semi-annually after verifying the amounts and offsetting any debts the franchisee owes to Floors To Go.
Floors To Go retains the franchisee's proceeds from the FTG CashBack Program up to $9,000 or for five years, whichever comes first. If the CashBack Participation does not generate $9,000 within five years, the lesser amount collected is considered full payment of the Initial Membership Fee. However, if the Membership Agreement is terminated before the five-year term ends, the franchisee must immediately pay the remaining balance of the Initial Membership Fee in cash. This mandatory participation in the FTG CashBack Program is a condition of the Floors To Go membership agreement.