How should a Floors To Go franchisee indicate the independent ownership of their business?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
t any failure to comply with such representations, warranties, and covenants shall constitute a material event of default under this Agreement.
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.
9.3. Confidentiality.
- a.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go FDD, franchisees must clearly indicate the independent ownership of their business in all public records, ensuring that the operations are separate and distinct from Floors To Go, LLC. Additionally, franchisees must prominently display a certificate from Floors To Go stating that the business is operated independently. This requirement is part of the franchisee's obligations to maintain ethical standards and provide high-quality service under the Floors To Go name.
This requirement underscores the importance of maintaining a clear distinction between the franchisee's business and the Floors To Go franchisor. By clearly indicating independent ownership, franchisees avoid creating any impression that they are partners, agents, or subsidiaries of Floors To Go, LLC. This separation helps protect both the franchisee and the franchisor from potential liabilities and misunderstandings related to business operations, debts, or obligations.
Floors To Go also emphasizes that the franchisee is an independent contractor and is not authorized to make any agreements or warranties on behalf of Floors To Go, LLC. This reinforces the independent nature of the franchisee's business and ensures that customers and other parties understand that the franchisee is responsible for their own actions and obligations. The franchisor will not be liable for any act, omission, contract, debt, tax, or any other obligation of the franchisee.
Overall, these measures are designed to protect the Floors To Go brand and the individual franchisee by clearly defining their separate roles and responsibilities. Prospective franchisees should understand these requirements and ensure they comply with all aspects of indicating independent ownership in their business operations and public records.