Can a Floors To Go franchisee transfer their rights to use the Floors To Go Marks to employees?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
One of our most valued assets is our intellectual property rights in our name. As such, at no time will you be permitted or authorized, directly or indirectly, to take any action to contest our ownership, title, right, or interest in the "Floors To Go" trade names, trademarks, service marks, trade secrets, methods, procedures, or advertising techniques which are a part of our business, or to contest our sole right to register, use, or license others to use such trade names, trademarks, service marks, trade secrets, methods, procedures, or advertising techniques.
4.1. Ownership Rights Defined.
- a. Your use of our service marks, trade names, and trademarks, including, but not limited to, Floors To Go and design and Floors To Go Your Hometown Flooring Center and design (collectively referred to as the "FTG Marks" or the "Marks") shall inure to our sole benefit. We are the sole owner of all right, title, and interest in and to the FTG Marks and goodwill attributed to the use of the FTG Marks. You expressly disclaim any and all rights, title, and interest in and to the FTG Marks licensed for your use and to any additional marks introduced by us after execution of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
Based on the 2025 Floors To Go Franchise Disclosure Document, franchisees are not permitted to transfer their rights to use the Floors To Go marks to employees or any other party. The FDD emphasizes that Floors To Go owns all rights, titles, and interests in the FTG Marks, including the goodwill associated with their use. Franchisees receive a limited license to use the marks during the term of their agreement, but this license does not extend to transferring those rights to others.
The agreement explicitly states that any use of the service marks, trade names, and trademarks, including Floors To Go, benefits Floors To Go exclusively. Franchisees expressly disclaim any rights to the FTG Marks beyond the licensed use granted to them. This ensures that Floors To Go maintains control over its brand identity and quality standards across all franchise locations.
Moreover, franchisees are prohibited from contesting Floors To Go's ownership or rights to register, use, or license the marks. They also agree not to incorporate the Floors To Go name or associated logos into their legal business name, further reinforcing the franchisor's control over the brand. Upon termination of the franchise agreement, franchisees must immediately cease using the Floors To Go marks and take necessary steps to remove the name from any assumed business name registrations. These measures collectively prevent franchisees from independently transferring or licensing the Floors To Go marks, ensuring brand consistency and protecting the franchisor's intellectual property rights.