Can Floors To Go develop tradenames that are not licensed to the Floors To Go franchisee under the agreement?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
o register, use, or license others to use such trade names, trademarks, service marks, trade secrets, methods, procedures, or advertising techniques.
4.1. Ownership Rights Defined.
- a. Your use of our service marks, trade names, and trademarks, including, but not limited to, Floors To Go and design and Floors To Go Your Hometown Flooring Center and design (collectively referred to as the "FTG Marks" or the "Marks") shall inure to our sole benefit. We are the sole owner of all right, title, and interest in and to the FTG Marks and goodwill attributed to the use of the FTG Marks. You expressly disclaim any and all rights, title, and interest in and to the FTG Marks licensed for your use and to any additional marks introduced by us after execution of this Agreement.
- b. All rights in and to the Marks, including, without limitation, trademark, design, patent and copyright rights, other than the user trademark rights specifically granted herein, are reserved to us. Any such rights which may arise in connection with your use of the Marks shall, without any requirement of notice or deed, be our property; provided, however, that you shall have the right, to the extent necessary in exercising your rights as a member hereunder, to the use of such rights during the Original Term and any Renewal Term of this Agreement only in Your Territory.
- c. Whenever requested by us, whether during the term or thereafter, you shall execute such documents and instruments as our legal counsel may deem necessary or appropriate to confirm our ownership of all rights in and to the Marks, to maintain the validity of the Marks, or to obtain or maintain registrations thereof.
- d. You agree that the nature and quality of the goods sold by you or on your behalf in connection with Marks shall be subject to our approval, and we shall have the right to inspect the quality of the goods sold under Marks.
- e. You may not transfer or assign to anyone, including your employees or independent contractors, your rights to use the Marks or your rights to participate in the FTG System or any of the FTG programs.
- 4.2. Use of the FTG Marks and Names. You shall confine your use of the FTG Marks to the sale of products and services authorized by us, unless otherwise approved in writing. You shall use the FTG Marks only in connection with the FTG System, and such use is specifically limited to your operation within Your Territory. Use of the FTG Marks or reference to your FTG location for any other business, event, or purpose is strictly prohibited, except with our prior written consent. If you or an affiliate of yours owns or operates an Abbey Carpet Showroom or a The Floor Club Showroom, you are expressly prohibited from using the Abbey Carpet name, marks or business address or The Floor Club name, marks or business address in any FTG advertisement or other form of publicity, which may include newspaper and radio advertisements, signs, billboards, flyers, coupons or similar items.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, Floors To Go retains ownership of all trademarks, tradenames, and service marks associated with the brand. The franchisee's use of these marks, including "Floors To Go" and "Floors To Go Your Hometown Flooring Center," benefits Floors To Go. The franchisee explicitly gives up any rights to these marks beyond the license granted in the agreement. Floors To Go reserves all rights to trademarks, designs, patents, and copyrights, except for the specific user trademark rights granted to the franchisee.
Any modifications or improvements to the marks made by the franchisee, also remain the property of Floors To Go, unless otherwise specified in the agreement. Floors To Go has the right to seek trademark protection for the Marks at its own expense, and the franchisee cannot seek or acquire any registration or interest in the Marks.
The franchisee is required to acknowledge Floors To Go's exclusive rights to the Marks and must not dispute the validity or value of the Marks. Additionally, any variation of the Marks used by the franchisee automatically becomes the property of Floors To Go and is subject to the agreement.
In practical terms, this means a Floors To Go franchisee cannot claim ownership or rights to any tradenames, trademarks, or logos associated with the Floors To Go brand, even if they modify or improve them. All goodwill generated through the use of these marks accrues solely to the benefit of Floors To Go. Upon termination of the franchise agreement, the franchisee's right to use these marks immediately ceases.