What financial stability and credit standing obligations do Floors To Go franchisees have?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
9.2. Obligations. You agree that you will (a) maintain high moral and ethical standards of conduct and shall neither engage in, nor allow others to engage in, deceptive, fraudulent, or unethical practices of any kind in connection with the "Floors To Go" name or FTG System, nor suffer, nor allow any part thereof to be used for immoral or illegal purposes or in any illegal manner; (b) provide an efficient, courteous, and high quality service to the public; (c) operate your Showroom continuously and in compliance with this Agreement; (d) promote the FTG System and not provide or participate in any other buying, merchandising, sales or marketing service, group, cooperative, system or franchise for floor covering or window treatment products or accessories which offers products similar to those offered by us while you are a member of the FTG System; (e) take sole responsibility for the performance of all obligations arising out of the operation of your business, including, but not limited to, workers' compensation, real estate, sales, payroll, franchise, income, personal property, and gross receipt taxes levied or assessed by reason of such operation; (f) indicate clearly the independent ownership of your business in all public records, and that the operations of said business are separate and distinct from the operation of Floors To Go, LLC; (g) use all reasonable means to promote and encourage the purchase of Floors To Go products by the public, and use your best efforts to create and maintain goodwill among the public towards the names "Floors To Go" and toward the FTG System; and (h) promptly provide us with written notice of any infringement of, or challenge to, your use of the FTG Marks.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
Based on the 2025 Floors To Go Franchise Disclosure Document, franchisees have several obligations related to the operation of their business. Floors To Go franchisees must maintain high ethical standards and avoid deceptive or fraudulent practices. They are expected to provide efficient, courteous, and high-quality service to the public and continuously operate their showroom in compliance with the franchise agreement.
Floors To Go franchisees are solely responsible for all obligations arising from their business operations. This includes, but is not limited to, workers' compensation, real estate, sales, payroll, franchise, income, personal property, and gross receipt taxes. Franchisees must also clearly indicate the independent ownership of their business in public records, ensuring it is distinct from Floors To Go, LLC.
Furthermore, franchisees are expected to actively promote Floors To Go products and maintain goodwill towards the brand. They must also promptly notify Floors To Go of any infringements or challenges to the use of the FTG Marks. While these obligations touch on financial and ethical responsibilities, the FDD does not explicitly detail requirements for franchisees to maintain a specific credit standing or demonstrate financial stability beyond these operational and legal requirements.