What claims are released upon approval of a Floors To Go franchise transfer?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
- The last sentence of Section 11.1(b) of the Agreement shall be deleted in its entirety and shall have no force or effect, and the following shall be substituted in lieu thereof:
Upon the our approval of the transfer, and without any further action by us or you, we shall be released and forever discharged of any and all claims you may have against us (and our officers, directors, agents and employees as of the date of the transfer), and against our subsidiaries or affiliates (and their respective officers, directors, agents and employees as of the date of the transfer), excluding only such claims as you may have based upon or arising from Indiana's Franchise Acts.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, specifically for franchisees in Indiana, upon approval of a franchise transfer, the franchisee releases Floors To Go from any and all claims. This release extends to claims against Floors To Go's officers, directors, agents, and employees as of the transfer date, as well as against Floors To Go's subsidiaries or affiliates and their respective personnel as of the same date.
However, there is a notable exception to this release. The franchisee does not release Floors To Go from claims based upon or arising from Indiana's Franchise Acts. This means that even after a transfer is approved, the franchisee retains the right to pursue legal action against Floors To Go if they believe the franchisor has violated Indiana's franchise laws.
This provision is specific to Indiana due to its franchise laws. Prospective Floors To Go franchisees in Indiana should understand that while a transfer releases most claims, it does not waive their rights under Indiana's franchise regulations. This ensures some level of protection for franchisees even after they transfer their franchise.