What action is prohibited regarding the goodwill associated with the Floors To Go System?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
- d.
Divert or attempt to divert any business of the Floors To Go Showroom licensed under this Agreement to any competitor by direct or indirect inducements or otherwise, or to do or perform directly or indirectly, any other act injurious or prejudicial to the goodwill associated with our Marks and the franchise system; or
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 32–33)
What This Means (2025 FDD)
According to the 2025 Floors To Go FDD, franchisees are prohibited from performing any act that is injurious or prejudicial to the goodwill associated with the Floors To Go marks and the franchise system. This means franchisees must not take actions that could harm the reputation or positive image of the Floors To Go brand.
This restriction is in place to protect the overall value and reputation of the Floors To Go brand. If a franchisee were to engage in activities that damage the brand's goodwill, it could negatively impact the entire franchise system, affecting other franchisees and the franchisor. This includes actions such as diverting business to competitors through inducements or other means.
To maintain and encourage goodwill, Floors To Go requires franchisees to use all reasonable means to promote and encourage the purchase of Floors To Go products by the public. Franchisees must also use their best efforts to create and maintain goodwill among the public toward the names "Floors To Go" and toward the FTG System. This includes maintaining high ethical standards and providing high-quality service.
Floors To Go also emphasizes the importance of protecting its intellectual property rights and brand reputation. Franchisees are not allowed to interfere with the use of the Floors To Go name or marks by the franchisor, its subsidiaries, affiliates, or other members. They must also operate their business in a way that does not impair the goodwill associated with the FTG Marks.