As a Floors To Go franchisee, can I be a lender to a competing business during the term of the agreement?

The 2025 Floors To Go Franchise Disclosure Document addresses activities that could harm the Floors To Go system. As a franchisee, you are prohibited from diverting business away from your Floors To Go Showroom to a competitor. This includes both direct and indirect actions that could be detrimental to the goodwill associated with Floors To Go's trademarks and franchise system.

Specifically, the FDD states that franchisees cannot divert or attempt to divert any business of the Floors To Go Showroom to any competitor through inducements or any other actions that could harm the goodwill of Floors To Go. Additionally, franchisees are prohibited from soliciting business from Floors To Go's present, former, or prospective customers, or advising them to curtail or cancel their business with Floors To Go.

While the FDD does not explicitly state that you cannot be a lender to a competing business, providing financial support to a competitor could be interpreted as an indirect inducement to divert business away from Floors To Go. Therefore, it is important to consider whether such an action could be seen as injurious or prejudicial to the Floors To Go system. If you are considering providing financial support to a competitor, it would be prudent to seek clarification from Floors To Go to ensure that it does not violate the terms of the Membership Agreement.