What constitutes 'good cause' for Floors To Go to terminate the agreement?

According to the 2025 Floors To Go Franchise Disclosure Document, Floors To Go can terminate the franchise agreement prior to its expiration only for good cause or as specified in Subsection 13.2(b). The definition of good cause includes, but is not limited to, a franchisee's failure to comply with any lawful requirement of the agreement or any of the agreements attached as schedules, provided the franchisee is given notice of the failure and 30 days to cure it.

This means that if a Floors To Go franchisee violates any part of their franchise agreement or related schedules, Floors To Go must first notify them of the violation and give them 30 days to fix the issue. If the franchisee fails to correct the problem within that timeframe, Floors To Go then has grounds to terminate the agreement.

It is important to note that the description of any default in any notice given by Floors To Go to the franchisee does not prevent Floors To Go from specifying additional or supplemental defaults in any action, arbitration, hearing, or suit relating to the agreement or the termination. This means Floors To Go can add more reasons for termination as the process moves forward.

For franchisees in Virginia, the FDD includes an additional disclosure related to the Virginia Retail Franchising Act. This act states that it is unlawful for a franchisor to cancel a franchise without reasonable cause or to use undue influence to induce a franchisee to surrender any right given to him by any provision contained in the franchise agreement. If any ground for default or termination stated in the Franchise Agreement does not constitute "reasonable cause" under Virginia law, that provision may not be enforceable.