Does Floors To Go permit deferred payment of the Initial Membership Fee?
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 qualifying CashBack items received on your behalf.
The Initial Membership Fee entitles you to participate in the FTG System and to receive various marketing materials currently available through the FTG System.
Source: Item 10 — FINANCING (FDD page 22)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the initial membership fee of $10,000 can be paid in installments. Specifically, $1,000 is due upon signing the Membership Agreement. The remaining $9,000 can be paid through the FTG CashBack Program.
Under the FTG CashBack Program, Floors To Go retains proceeds allocable to the franchisee for up to five years or until the $9,000 is covered, whichever comes first. This program involves manufacturers offering cash back incentives on selected floor covering and window treatment products, with rebates potentially reaching up to 8% of the purchase price. These rebates are paid to FTG on the franchisee's behalf.
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 remaining balance of the initial membership fee becomes immediately due in cash. Floors To Go does not charge interest on these deferred payments.