Can a Floors To Go franchisee face competition from other channels of distribution that Floors To Go controls?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. Specifically, you may face competition from other FTG Showrooms that we or our affiliates franchise or own and that operate at traditional sites outside your territory. Also, you may face competition from other outlets that we franchise or own, or from other channels of distribution or competitive brands we control, including, but not limited to, competition from the FTG Shop At Home program.
We do not restrict you from soliciting or accepting orders from outside your territory, but you do not have the right to use other channels of distribution to make sales outside your territory.
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- to freely and unconditionally do business, or authorize others to do business, under the FTG Marks, through alternative marketing plans or
systems, alternative distribution methods or procedures, and different business formats, at any locations inside or outside your territory.
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- to establish, own and operate, or grant others the right to establish, own and operate, businesses offering dissimilar products and services, at any locations inside and outside your territory, under the FTG Marks;
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- to establish, own and operate, or grant the right to establish, own and operate, similar businesses or any other businesses or any other businesses offering similar or dissimilar products and services, through similar or dissimilar channels of distribution (including the Internet and similar electronic media), at any locations inside or outside your territory, under trademarks or service marks other than the FTG Marks;
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- to acquire the assets or ownership interests of one or more businesses providing products and services similar to those provided at FTG Showrooms, and franchising, licensing or creating similar arrangements with respect to these businesses once acquired, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating, including in your territory;
Source: Item 12 — TERRITORY (FDD pages 27–30)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, a franchisee may face competition from other channels of distribution that Floors To Go controls. Specifically, Floors To Go franchisees may face competition from other Floors To Go Showrooms that Floors To Go or its affiliates franchise or own, which operate at traditional sites outside the franchisee's territory. Additionally, competition may arise from other outlets that Floors To Go franchises or owns, or from other channels of distribution or competitive brands it controls, including the FTG Shop At Home program. This means that while a franchisee is granted territorial rights, these rights are not exclusive, and Floors To Go retains the ability to operate or franchise other outlets and channels that could compete with the franchisee's business.
Floors To Go retains several rights that could impact a franchisee's business. These include the right to operate Floors To Go Showrooms outside the franchisee's territory, develop and license trademarks not already licensed to the franchisee, and conduct business under the Floors To Go Marks through alternative marketing plans, distribution methods, or business formats, both inside and outside the franchisee's territory. Floors To Go also has the right to establish businesses offering dissimilar products and services under the Floors To Go Marks, and to operate similar businesses through different channels of distribution under different trademarks. Furthermore, Floors To Go can acquire businesses similar to Floors To Go Showrooms, even if they compete within the franchisee's territory.
Floors To Go does not restrict franchisees from soliciting or accepting orders from outside their territory. However, franchisees are not allowed to use other channels of distribution to make sales outside their territory. This creates a situation where Floors To Go can leverage various channels to compete, while the franchisee's ability to expand outside their territory using different channels is limited. Prospective franchisees should carefully consider the potential impact of these competitive channels on their business and revenue projections. Understanding the scope and nature of these potential competitive pressures is crucial for assessing the viability of a Floors To Go franchise.