What claims are released upon Floors To Go's approval of the transfer?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon 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 respective 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) regarding your previous participation in the FTG System.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, upon the franchisor's approval of a franchise transfer, the transferor (i.e., the current franchisee) releases Floors To Go from any and all claims related to their previous participation in the Floors To Go system. This release extends to Floors To Go's officers, directors, agents, and employees, as well as its subsidiaries and affiliates and their respective personnel.
This means that once the transfer is approved, the franchisee gives up the right to sue Floors To Go for any issues that occurred during their time as a franchisee. This could include claims related to training, support, marketing, or any other aspect of the franchise relationship. The release is effective immediately upon approval of the transfer and requires no further action from either party.
For a prospective franchisee, this clause highlights the importance of due diligence before purchasing a franchise from an existing franchisee. Any potential claims or disputes the buyer might have against Floors To Go based on the previous owner's experience will be waived once the transfer is finalized. It would be prudent to investigate the history of the franchise location and any past issues with Floors To Go before completing the purchase.