Where must a Floors To Go franchisee conduct their business?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to conduct your business at the location designated in Schedule "A" of the Membership Agreement and in no other location. Schedule "A" to the Membership Agreement will include the location of your principal place of business (the approved Showroom location) and a description of your territory. If your territory is defined as a radius, it will be measured from your approved Showroom. Otherwise, the boundaries of a territory are typically designated by streets or by the political boundaries of cities as they exist on the date the Membership Agreement is signed.
Source: Item 12 — TERRITORY (FDD pages 27–30)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, a franchisee must conduct their business at the location designated in Schedule "A" of the Membership Agreement and in no other location. Schedule "A" includes the location of the principal place of business, which is the approved Showroom location, and a description of the territory. If the territory is defined as a radius, it will be measured from the approved Showroom. Otherwise, the boundaries of a territory are typically designated by streets or by the political boundaries of cities as they exist on the date the Membership Agreement is signed.
Floors To Go grants territorial rights to the franchisee, which are officially identified in Schedule "A" of the Membership Agreement. Floors To Go will not open any company-owned Floors To Go Showrooms or permit other franchised Floors To Go Showrooms to be located within the franchisee's territory. The territory will be determined based on factors that Floors To Go deems relevant, such as population, traffic flow, presence of businesses, location of competitors (including other showrooms), demographics, and other market conditions.
While franchisees are restricted to operating within their designated location, Floors To Go does not restrict franchisees from soliciting or accepting orders from outside their territory. However, franchisees do not have the right to use other channels of distribution to make sales outside their territory. Under the Membership Agreement, a franchisee has the right to move their Showroom to another location, provided that they give Floors To Go ninety (90) days' prior written notice, the new location is within their existing territory, the new location otherwise complies with the terms of the Membership Agreement, and they agree to a revision of their existing territory, as determined by Floors To Go. The relocation must be approved in writing by Floors To Go. The franchisee will be required to continue paying the monthly Service Fee and Advertising Fee during the time between termination of operations at the original Showroom location and commencement of operations at the new Showroom location.