Can a Floors To Go franchisee be an employee of a competing business during the term of the agreement?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
- d.
Divert or attempt to divert any business of the Floors To Go Showroom licensed under this Agreement to any competitor by direct or indirect inducements or otherwise, or to do or perform directly or indirectly, any other act injurious or prejudicial to the goodwill associated with our Marks and the franchise system; or
e. Disclose to any person, firm or corporation the name of, or business arrangement with, any of our present, former, future or prospective suppliers or customers, or any of those of our subsidiaries, our affiliates or any of our members.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
The 2025 Floors To Go Franchise Disclosure Document addresses the franchisee's obligations regarding competition during the term of the agreement. Specifically, Floors To Go franchisees are prohibited from diverting business from their Floors To Go Showroom to any competitor, whether through direct or indirect methods. They also cannot perform any action that could harm the goodwill associated with Floors To Go's trademarks and franchise system.
Additionally, Floors To Go franchisees are restricted from soliciting business from current, former, or prospective customers of Floors To Go, its affiliates, or its members. They are also prohibited from advising any such customer to reduce or terminate their business with Floors To Go, its affiliates, or its members.
Finally, Floors To Go franchisees are barred from disclosing the names or business arrangements of Floors To Go's suppliers or customers to any third party. These restrictions aim to protect Floors To Go's market position, customer relationships, and proprietary information, ensuring that franchisees focus their efforts on growing their Floors To Go business and upholding the brand's reputation.