Who pays the cash rebates in the Floors To Go CashBack Program?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
t we may make so that the operation of your Showroom shall in no way damage our reputation or the reputation of other members.
- 7.2. FTG CashBack Program. You will have the right to participate in the FTG CashBack Program. This program consists of various floor covering and window treatment manufacturers offering CashBack incentives for the purchase of selected floor coverings and window treatments, specifically marked as CashBack eligible. By purchasing such selected items, you will receive a cash rebate based upon a percentage of the purchase price of the
selected items purchased. These percentages range up to 8% of the purchase price of the selected items. All cash rebates will be paid by the suppliers to us on your behalf. You agree that you will have only one account number with each supplier. We will hold such funds, without liability for interest, and after verification of amounts received, and after setting off any amounts owed to us by you hereunder, will distribute such funds to you, annually or semi-annually. You will be notified on a regular basis of qualifying CashBack terms and any deduction therefrom.
Our goal is to obtain the best possible rebate terms from manufacturers for the FTG CashBack Program. However, our sole responsibility under the FTG CashBack Program is to properly distribute to you and our other members the funds paid into the FTG CashBack Program by participating manufacturers. We are not responsible if a manufacturer changes the terms of its rebate, discontinues its rebate, or fails to pay your rebate.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go FDD, the cash rebates in the FTG CashBack Program are paid by the floor covering and window treatment manufacturers, not by Floors To Go itself. These manufacturers offer incentives on selected products, and the rebates are a percentage of the purchase price, potentially reaching up to 8% on certain items.
Floors To Go acts as an intermediary in this process. The manufacturers send the rebate funds to Floors To Go on behalf of the franchisee. Floors To Go then holds these funds, without accruing any interest, and distributes them to the franchisee either annually or semi-annually. However, before distributing the funds, Floors To Go will verify the amounts received and deduct any outstanding amounts owed to them by the franchisee.
Floors To Go's responsibility is limited to distributing the funds received from the manufacturers. Floors To Go is not liable if a manufacturer alters or discontinues its rebate program or fails to make the rebate payment. The FDD also states that Floors To Go has no fiduciary duties regarding the CashBack Program's operation or administration, shifting the onus to the manufacturer. This means that the franchisee bears the risk of manufacturer non-payment or changes to the rebate terms.
This arrangement means that the franchisee's participation in the CashBack Program is subject to the manufacturers' willingness and ability to provide the rebates. A prospective franchisee should consider the potential impact on their revenue if manufacturers reduce or eliminate these incentives. It would be prudent for a potential franchisee to inquire about the historical reliability of manufacturers participating in the CashBack Program and any recourse available if rebates are not paid as expected.