What actions related to the Floors To Go Marks or goodwill can lead to termination?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
fying additional
or supplemental defaults in any action, arbitration, hearing or suit relating to this Agreement or the termination thereof.
- b. Only in the following instances may we give you immediate notice of termination without opportunity to cure:
-
- The parties agree in writing to terminate this Agreement;
-
- You make a material misrepresentation relating to your acquisition of the membership, or you engage in conduct which reflects materially and unfavorably upon the goodwill and reputation of our business or the FTG System, including, but not limited to, a failure to represent the Showroom as "Independent";
-
- You fail to comply with any federal, state, or local law or regulation applicable to the operation of your Showroom for a period of ten (10) days after notification of noncompliance;
-
- You fail to achieve the volume purchases through the FTG System as agreed to in Subsection 7.1(a);
-
- You fail to timely install the Showroom signage as required by Section 7.3;
-
- You fail to obtain and maintain credit with merchandise vendors and manufacturers for the purchase of floor covering products and other supplies;
-
- You, after curing any failure in accordance with Subsection 13.2(a), engage in the same noncompliance whether or not such noncompliance is corrected after notice;
-
- You repeatedly fail to comply with one or more requirements of this Agreement, whether or not corrected after notice;
-
-
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go FDD, several actions related to the brand's marks and goodwill can lead to immediate termination of the franchise agreement without opportunity to cure. These include engaging in conduct that reflects materially and unfavorably on the goodwill and reputation of the Floors To Go system, such as failing to represent the showroom as "Independent." This highlights the importance of adhering to brand standards and properly representing the franchise.
Additionally, franchisees must not interfere with Floors To Go's use of its name or marks, nor impair the goodwill associated with them. Franchisees are required to comply with Floors To Go's trademark, service mark, logo, and advertising requirements when developing or purchasing internet-based advertising. They must also protect the confidentiality of proprietary information and avoid disclosing it to unauthorized parties. These stipulations emphasize the need to respect and protect the brand's intellectual property and reputation.
Furthermore, franchisees cannot contest Floors To Go's ownership or rights to its trade names, trademarks, service marks, trade secrets, methods, procedures, or advertising techniques. They are also prohibited from seeking or acquiring any registration or interest in any of the marks. These clauses reinforce Floors To Go's control over its brand and prevent franchisees from undermining its intellectual property rights. Failing to comply with these provisions can result in immediate termination of the franchise agreement.