Who benefits from the goodwill associated with the Floors To Go System?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Your use of our service marks, trade names, and trademarks, including, but not limited to, Floors To Go and design and Floors To Go Your Hometown Flooring Center and design (collectively referred to as the "FTG Marks" or the "Marks") shall inure to our sole benefit. We are the sole owner of all right, title, and interest in and to the FTG Marks and goodwill attributed to the use of the FTG Marks. You expressly disclaim any and all rights, title, and interest in and to the FTG Marks licensed for your use and to any additional marks introduced by us after execution of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, Floors To Go, LLC benefits from the goodwill associated with the Floors To Go system. The FDD states that Floors To Go owns all rights, titles, and interests in the FTG Marks and the goodwill attributed to the use of these marks. The franchisee's use of Floors To Go's service marks, trade names, and trademarks, including Floors To Go and design and Floors To Go Your Hometown Flooring Center and design, benefits Floors To Go.
This means that while franchisees are expected to use their best efforts to create and maintain goodwill among the public toward the Floors To Go name and the FTG System, the benefits of that goodwill ultimately accrue to the franchisor, Floors To Go, LLC. The franchisee expressly disclaims any rights to the FTG Marks licensed for their use and to any additional marks introduced by Floors To Go after the execution of the Franchise Agreement.
This is a common arrangement in franchising, where the franchisor owns the brand and its associated goodwill. Floors To Go franchisees are obligated to promote the brand and maintain certain standards to uphold the brand's reputation, but the resulting increase in brand value primarily benefits the franchisor. Upon termination of the franchise agreement, the franchisee must discontinue all use of the Floors To Go marks and system, further emphasizing that the goodwill belongs to Floors To Go, LLC.