What are some of the conditions for Floors To Go's approval of a franchisee transfer?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Membership Agreement | Summary | |
|---|---|---|---|
| l. | Franchisor approval of transfer by franchisee | Section 11.1 | We have right to approve/disapprove transfer. |
| m. | Conditions for f ranchisor approval of transfer | Section 11.1 | Includes payment of monies owed and fee; no breach; release of liability; transferee suitability; and execution of new agreement |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 33–36)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the franchisor has the right to approve or disapprove a transfer of the franchise. Several conditions must be met for Floors To Go to approve a transfer by a franchisee.
These conditions include the payment of any monies owed to Floors To Go, as well as any applicable transfer fees. The franchisee must not be in breach of the Membership Agreement. Additionally, the franchisee must execute a release of liability, meaning they agree to absolve Floors To Go of any future claims or issues related to the franchise.
The prospective transferee must also be suitable, meeting Floors To Go's standards for franchisees. Finally, the transferee is required to execute a new Membership Agreement, indicating their commitment to the current terms and conditions of the franchise system. These stipulations ensure that any transfer maintains the integrity and standards of the Floors To Go brand.
These conditions are typical in franchising, as franchisors want to ensure that new franchisees are financially stable, qualified, and committed to the brand. Prospective franchisees should carefully review Section 11.1 of the Membership Agreement for a complete understanding of the transfer process and requirements.