Did Floors To Go admit wrongdoing in the Assurance of Discontinuance?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 3: LITIGATION]
ITEM 3. LITIGATION
In Re: Franchise Poaching Provisions Assurance of Discontinuance (Floors To Go, LLC), King County Superior Court, State of Washington Antitrust Division, Office of the Attorney General (No. 19-2-24814-9). The Attorney General asserted that FTG included language in its franchise agreements that restricted a franchisee's ability to solicit or hire workers from FTG or another franchisee (no-recruiting provision). On September 23, 2019, FTG voluntarily entered into an Assurance of Discontinuance with the State of Washington agreeing that it (i) will no longer include no-recruiting provisions in any of its future membership agreements, (ii) no longer enforce no-recruiting provisions in any of its existing membership agreements, (iii) will not seek to intervene or defend in any way the legality of any no-recruiting provision, and (iv) will endeavor to amend all existing membership agreements with members in the State of Washington to remove any no-recruiting provisions in those members' existing membership agreements.
Other than this action, no litigation is required to be disclosed in this Item.
Source: Item 3 — LITIGATION (FDD page 10)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the company voluntarily entered into an Assurance of Discontinuance with the State of Washington on September 23, 2019. The Attorney General had asserted that Floors To Go included language in its franchise agreements that restricted a franchisee's ability to solicit or hire workers from Floors To Go or another franchisee, which is referred to as a no-recruiting provision.
As part of the Assurance of Discontinuance, Floors To Go agreed to several conditions. These include no longer including no-recruiting provisions in any of its future membership agreements, no longer enforcing these provisions in existing agreements, and not intervening or defending the legality of any no-recruiting provision. Additionally, Floors To Go committed to amending all existing membership agreements with members in the State of Washington to remove any no-recruiting provisions.
The document states that this Assurance of Discontinuance was voluntarily entered into by Floors To Go. The FDD does not explicitly state that Floors To Go admitted any wrongdoing. The agreement to discontinue and amend the mentioned provisions suggests a resolution to the concerns raised by the Attorney General, without a formal admission of guilt or liability.
Prospective franchisees should be aware of this past legal action and the changes Floors To Go has made to its franchise agreements as a result. It is advisable to review current franchise agreements carefully to ensure compliance with these changes and to understand the implications for franchisee's rights and obligations regarding employee recruitment.