Does Exhibit B-3 specify any geographic limitations on Floors To Go's activities?

According to the 2025 Floors To Go Franchise Disclosure Document, Exhibit B-3 outlines specific geographic limitations and rights retained by Floors To Go, LLC. Floors To Go will not operate or allow others to operate a business substantially identical to the franchisee's within their territory under a different trade name.

However, Floors To Go retains the right to have the business acquired by another business providing similar products/services or any other business, regardless of the transaction's form, and to engage in any activities within or outside the franchisee's territory that are not specifically prohibited in the agreement. This means that while Floors To Go grants a territory, they reserve the right to conduct other business activities, even within that territory, that don't directly compete under the same brand.

The document specifies that Floors To Go is not obligated to compensate the franchisee for exercising these rights within the franchisee's territory. This clause highlights a potential risk for franchisees, as Floors To Go could engage in activities that impact the franchisee's business without providing any financial consideration. This is a fairly typical clause in franchise agreements, as it allows the franchisor to adapt to changing market conditions and explore new business opportunities.