How does Floors To Go determine the territory granted to a franchisee?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 7.2 for details); and (c) adopt and use our selected trademarks, service marks, and trade names with our signs, emblems, and insignia.
- 1.2. Your Territory. You will be granted the right to conduct your business at the location designated on the attached Schedule "A" ("Your Territory" or "Showroom"). Your Territory will be determined based on the factors that we deem relevant, which might include population, traffic flow, presence of businesses, location of competitors (including other showrooms), demographics, and other market conditions. The Territory may be defined based on geographic boundaries, streets or other criteria, as we determine appropriate. On renewal or transfer of your franchised business, Your Territory may be modified. Depending on the then-current demographics of Your Territory, and on our then-current standards for territories, if Your Territory is larger than our then-current standard territory, we may require you or the transferee to accept a renewal territory or a transfer territory that is smaller than Your Territory. This means that we will not open or license any other person or entity to open a showroom using the "Floors To Go" trade name or trademarks within Your Territory. However, you may face competition from other outlets that we franchise or own, or from other channels of distribution or competitive brands we control, within Your Territory, including, but not limited to, competition from the FTG Shop At Home program. We will not prohibit you from selling products for installation outside of Your Territory nor will we prohibit you from offering other floor covering or window treatment
products for sale along with those products available through the FTG System.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the territory granted to a franchisee is designated on Schedule A, referred to as "Your Territory" or "Showroom", and the right to conduct business is at the location designated on that schedule. Floors To Go determines the territory based on factors they deem relevant, including population, traffic flow, the presence of businesses, the location of competitors (including other showrooms), demographics, and other market conditions. The territory may be defined based on geographic boundaries, streets, or other criteria, as Floors To Go determines appropriate.
It is important to note that the territory may be modified upon renewal or transfer of the franchised business. If the territory is larger than Floors To Go's then-current standard territory, they may require the franchisee or transferee to accept a renewal or transfer territory that is smaller. While Floors To Go will not open or license another showroom within the franchisee's territory, franchisees may face competition from other outlets that Floors To Go franchises or owns, or from other channels of distribution or competitive brands they control, including the FTG Shop At Home program.
However, Floors To Go will not restrict franchisees from selling products for installation outside of their territory or from offering other floor covering or window treatment products for sale along with those products available through the FTG System. In other words, Floors To Go will not restrict franchisees from marketing or soliciting customers outside their territory. This provides an opportunity for franchisees to expand their customer base beyond their designated territory.
Prospective franchisees should carefully review Schedule A and discuss the factors used to determine the territory with Floors To Go to fully understand the potential and limitations of the granted territory. Understanding the competitive landscape and the potential for expansion beyond the territory is crucial for making an informed investment decision.