What conditions must be met for Floors To Go to approve a transfer of the membership agreement?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
11.1. Requirements for Transfer.
- a. Neither you nor any of your equity owners shall, without our prior written consent, by operation of law or otherwise, attempt to sell, assign, transfer, convey, give way or encumber to any person, this Agreement, your interest in your membership or your interest in any proprietorship, partnership or business entity which owns any interest in your membership. Any transfers shall be binding upon and inure to the benefit of your successors and assigns. An unauthorized transfer, however, shall be null and void and shall constitute a material default hereunder. We require the following in order to consent to your transfer:
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- You must provide us with written notification of such proposed transfer at least ninety (90) days in advance;
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- All accrued money obligations of yours owed to us, our subsidiaries, or our assigns, shall be satisfied prior to the assignment or transfer;
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The transferee(s) shall meet our standards of qualifications including, but not limited to, financial strength and business experience;
The transferee(s) shall jointly and severally execute both or either (as we shall direct):
- a.
A membership agreement and other ancillary agreements with us on our then-current standard forms, which agreements shall supersede this Agreement in all respects, and the terms of which may differ from the terms of this Agreement; and/or
- b.
A written assignment between you, transferee(s), and us (in a form satisfactory to us) with transferee(s) assuming all of your obligations;
You or the transferee(s) shall pay to us the Transfer Fee; and
Two representatives of the transferee(s) shall attend a two-day training program at our headquarters in Bonita Springs, Florida prior to our consent to transfer.
We will reimburse transferee(s) for all reasonable costs relating to travel and lodging incurred by the two representatives for their attendance at this two-day program.
- b.
We will approve or disapprove the proposed transferee(s) within sixty (60) days after notification.
If we fail to disapprove the proposed transferee(s) within this time, the transfer shall be deemed approved.
Upon such transfer, transferee(s) shall assume the remaining term of the transferor's current membership agreement.
Subsequent renewals can be made in accordance with the terms as set forth in transferee(s)' new agreement.
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, a franchisee needs to meet several requirements to get approval for transferring their membership. Ninety days advance written notification of the proposed transfer is required. All outstanding financial obligations to Floors To Go, its subsidiaries, or assigns must be settled before the transfer can proceed. The proposed transferee(s) must also meet Floors To Go's qualification standards, which include demonstrating financial strength and relevant business experience.
Furthermore, the transferee(s) must execute Floors To Go's current standard membership agreement and ancillary agreements, which will supersede the existing agreement and may have different terms. Alternatively, a written assignment among the franchisee, transferee(s), and Floors To Go may be required, ensuring the transferee(s) assume all of the franchisee's obligations. The franchisee or transferee(s) must pay the transfer fee. Two representatives of the transferee(s) must attend a two-day training program at Floors To Go's headquarters in Bonita Springs, Florida, before the transfer is approved. Floors To Go will reimburse the transferee(s) for reasonable travel and lodging costs associated with this training.
Floors To Go has 60 days after notification to approve or disapprove the proposed transferee(s). If Floors To Go fails to respond within this timeframe, the transfer is considered approved. Upon approval of the transfer, the transferee(s) will assume the remaining term of the transferor's current membership agreement, and subsequent renewals will be governed by the terms of the transferee(s)' new agreement. Upon the transfer's approval, Floors To Go is released from any claims the franchisee may have against them related to their previous participation in the Floors To Go system.
These conditions are typical in franchising, as franchisors want to ensure that any new franchisee is well-qualified and committed to the brand. The training requirement ensures that the new franchisee is properly trained in the Floors To Go system. The release of claims protects Floors To Go from potential future legal issues related to the previous franchisee's operation of the business.