Must a Floors To Go franchisee ensure their showroom manager does not compete with the showroom?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
With regard to the FTG System, there are no restrictions on the goods and services which may be offered by you, including competing floor covering products, except that you may not participate in a competing marketing and merchandising system which offers products similar to those offered by the FTG System while a member of the FTG System.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 32–33)
What This Means (2025 FDD)
According to the 2025 Floors To Go FDD, there are no explicit restrictions preventing a showroom manager from competing with the Floors To Go showroom. The FDD does not address the actions of showroom managers, but it does state that franchisees may not participate in a competing marketing and merchandising system while a member of the Floors To Go system. This restriction applies directly to the franchisee, not necessarily their employees.
However, the Floors To Go FDD states that franchisees are permitted to purchase floor covering merchandise from sources not affiliated with the Floors To Go System, provided they meet the minimum purchase requirements from FTG-approved vendors. This suggests that while franchisees must primarily source products through the FTG System, they are not entirely restricted from other sources.
Prospective franchisees should clarify with Floors To Go whether there are any implicit expectations or requirements regarding the competitive activities of their employees, including showroom managers. It would be prudent to understand if any specific clauses in the Membership Agreement address employee conduct or if there are any policies that could indirectly impact a franchisee's responsibility in this area.