Does Floors To Go currently have minimum insurance coverage requirements for its franchisees?

According to the 2025 Floors To Go Franchise Disclosure Document, Floors To Go does not currently have minimum insurance coverage requirements for its franchisees. However, Section 7.8 of the Membership Agreement requires franchisees to obtain the types and amounts of insurance coverage customary in the industry. This typically includes liability, automobile, and workers' compensation insurance.

While Floors To Go does not specify minimum amounts, franchisees must still secure adequate coverage. The determination of what constitutes "customary" coverage is left to industry standards and the franchisee's judgment, potentially creating ambiguity. It is the franchisee's responsibility to ensure they have sufficient coverage to protect their business from potential liabilities.

Prospective franchisees should carefully evaluate the typical insurance coverage amounts held by similar flooring businesses in their area to ensure they meet the customary requirements. It would be prudent to consult with an insurance professional experienced in the flooring industry to determine appropriate coverage levels. Franchisees should also clarify with Floors To Go what specific events or situations the insurance coverage should address to avoid any future disputes over the adequacy of their insurance.