What claims are released upon termination of the Floors To Go Franchise Agreement?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
for which we have indemnified you pursuant to Section 4; or (iv) claims arising out of your proper reliance on or use of procedures or materials provided by us. This indemnification shall survive the termination of this Agreement.
- 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.
- The last sentence of Section 13.1 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 expiration or termination of this Agreement, 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 expiration or termination), and against our subsidiaries or affiliates (and their respective officers, directors,
Exhibit B-3
agents and employees as of the date of the expiration or termination), excluding only such claims as you may have based upon or arising from Indiana's Franchise Acts.
- Section 16.2 of the Agreement shall be supplemented by the following provision which shall be considered an integral part of the Agreement:
This section shall not in any way abrogate or reduce any rights of franchisees as provided for under Indiana's Franchise Act (Indiana Code § 23- 2-2.7-1(10)).
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, Floors To Go will be released from any claims the franchisee may have against them. This release extends to Floors To Go's officers, directors, agents, and employees, as well as its subsidiaries and affiliates, including their respective officers, directors, agents, and employees. This release is effective without any further action required by either Floors To Go or the franchisee.
However, there is an exception to this release. The release does not include any claims the franchisee may have that are based upon or arise from Indiana's Franchise Acts. This means that if a franchisee in Indiana has a claim against Floors To Go under Indiana's franchise laws, those claims are not waived or released upon termination or expiration of the agreement.
Additionally, the FDD states that in Maryland, the franchisee's representations do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Any claims arising under Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise. Therefore, prospective franchisees should be aware of the specific state laws that govern their franchise agreement and any potential claims they may have.