How does Floors To Go define 'transfer' by the franchisee in the Membership Agreement?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Membership Agreement | Summary | |
|---|---|---|---|
| Fee or any applicable Early Termination Fee. | |||
| j. | Assignment of contract by franchisor | Section 10 | Notice |
| k. | "Transfer" by franchisee—defined | Sections 11.1, 11.2, 11.3 and 11.4 | Includes transfer of interest in Membership Agreement and in member if a business entity, upon death/disability, and change in business form |
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, a 'transfer' by the franchisee is comprehensively defined within Sections 11.1, 11.2, 11.3, and 11.4 of the Membership Agreement. This definition encompasses not only the transfer of the Membership Agreement itself but also the transfer of interest in the member entity if the franchisee is a business entity.
Furthermore, the definition of 'transfer' includes scenarios involving the death or disability of the franchisee, ensuring clarity on how the franchise will be handled in such circumstances. It also addresses changes in the business form of the franchisee, indicating that any alteration in the legal structure of the franchisee's business could be considered a transfer under the agreement.
This broad definition is significant for prospective Floors To Go franchisees as it highlights the various situations that could trigger the transfer provisions of the Membership Agreement. Franchisees need to be aware that any change in ownership, business structure, or personal circumstances such as death or disability could necessitate franchisor approval and adherence to specific transfer conditions outlined in the agreement.